Evelyn Incorporated is expected to pay a dividend at year end of D1 = $2.25. This dividend is expected to grow at a constant rate of 6.25% per year, and the common stock is currently valued at $75.50 per share. The before-tax cost of debt is 7.50%, and the tax rate is 21%. The target capital structure consists of 30% debt and 70% common equity. What is the company's WACC?

Group of answer choices

9.47%

6.93%

3.86%

8.24%

8.71%