Company Z is expected to pay a dividend at year end of D1=$1.50. This dividend is expected to grow at a constant rate of 4.00% per year, and the common stock is currently valued at $40.00 per share. The before-tax cost of debt is 5.00%, and the tax rate is 25%. The target capital structure consists of 40% debt and 60% common equity. What is the company's WACC? 6.65% 6.15% 3.75% 5.15% 7.07\%