ABC Inc. is expected to pay a $2.50 dividend at year end (D₁ = $2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $67.50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The company's capital structure consists of 45% common equity and 55% debt. What is the companys WACC?

	1.	6.02%
	2.	5.88%
	3.	5.95%
	4.	6.62%
	5.	6.24%