53 of 55 Sorensen Systems Inc. is expected to pay a $3.90 dividend at year end (D = $3.90), the dividend is expected to grow at a constant rate of 4.50% a year, and the common stock currently sells for $60.00 a share. The before-tax cost of debt is 6.00%, and the tax rate is 25%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC if all the equity used is from retained earnings? Do not round your intermediate calculations. a. 7.75% b. 7.43% C8.08% d. 6.56% e. 8.24%