A stock trades for $2.50, per share. It is expected to pay a $2.50 dividend at year end (D1=$2.50), and the dividend is expected to grow an a cotosant tabe of 5.50% a year. The before-tax cost of debt is 7.75%, and the tax rate is 40%. The target capital structure consists of 60% debt and 40% comsunon oquiry. What in the company's WACC? a. 6.89% b. 8.30% c. 8.02% d. 7,17% e. 7.74%