Integrated Septic Services, is manufacturer of septic tanks whose slogan is "we are number 1 in the number 2 business". The firm 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% indefinitely, and the common stock currently sells for $52.50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The capital structure consists of 45% debt and 55% common equity, What is the company's WACC if all the equity used is from retained earnings? 7.07% 7.36% 7.67% 7. 98% 8.29%