is expected to pay a $2.50 divident at year end (D1=$2.50, the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $67.50 a share. The before-tax cost of debt is 7.50% and the tax rate is 40%. The target capital structure consits of 45% debt and 55% common equity. what is the company's WACC if all the equity used is from retained earnings? 6.02% 7.09 5.95 6.24 5.88