A firms stock trades for $62.00 per share. They plan to pay a $3.00 dividend on its common stock next year and dividends are expected to grow at a constantrate of 6.00%. The before-tax cost of debt is 8.25%, and the tax rate is 35%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC if all the new equity used is from reinvested earnings?

A. 6.5%

B. 7.8%

C. 8.1%

D. 8.4%

E. 9.0%