Gateway Inc. has a WAAC of 11.5%. Its target capital structure is 55% equity and 45% debt. The company has sufficient retained earnings to fund the equity portion of its capital budget. The before-tax cost of debt is 9%, and the companys tax rate is 30%. If the expected dividend next period (Div1) and current stock price (P0) are $5 and $45, respectively, what is the companys growth rate?

First of all, given WACC and plug in all information above.

WACC =