A stock has just paid $6 of dividend. The dividend is expected to grow at a constant rate of 9% a year, and the common stock currently sells for $89. The before-tax cost of debt is 6% and the tax-rate is 45%. The target capital structure consists of 38% debt and 62% common equity. What is the companys WACC if all the equity used is from retained earnings?

• 11.39%
• 10.48%
• 12.07%
• 12.42%
• 10.82%