Question 42 3 pts Sorensen Systems Inc. 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% a year, and the common stock currently sells for $87.50 a share. The before-tax cost of debt is 7.50% and the tax rate is 25%. The target 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? Do not round your intermediate calculations. 735% 5.10% 5.699 7.13% 6.62%