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Plasti-tech Inc. is financed 65% with equity and 35% with debt. Currently, its debt has a before-tax cost of 8%. Plasti-tech's common stock trades at

Plasti-tech Inc. is financed 65% with equity and 35% with debt. Currently, its debt has a before-tax cost of 8%. Plasti-tech's common stock trades at $25 per share and its most recent dividend paid was $1.50. Future dividends are expected grow by 8%. If the tax rate is 40%, what is Plasti-tech's WACC?

A. 11.1%

B. 10.7%

C. 9.70% D. 8.19%

E. 8.02%

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