Avido Inc. is expected to pay a $2.00 dividend at year end (D₁ = $2.00), the dividend is expected to grow at a constant rate of 4.50% a year, and the common stock currently sells for $47.00 a share. The before-tax cost of debt is 6.50%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the companys WACC if all the equity used is from retained earnings?