22. Sorensen Systems Inc. is expected to pay a $2.50 dividend next year, the dividend is expected to grow at a constant rate 5.5% a year, and the common stock currently sells for $37.50 a share. The yield-to-maturity on its outstanding bonds is 7.50%, and the tax rate is 40%. The target capital structure weights consist of 45% debt and 55% common equity. What is the company's WACC if all the equity is used from retained earnings? A) 9.41% B) 8.72% C) 7.58% D) 9.94% E) 8.80%