Quinlan Enterprises stock trades at $$54\mathrm{.}6875$ per share. It is expected to pay a $$2\mathrm{.}50$ dividend at year end, and the dividend is expected to grow at a constant rate of $5\mathrm{.}50\%$ a year. The after$-$tax cost of debt is $4\mathrm{.}50\%,$ and the tax rate is $40\%.$ 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 issuing new stock, and the flotation cost is $5\%$ of the stock price?

$7\mathrm{.}36\%$

$7\mathrm{.}98\%$

$8\mathrm{.}29\%$

$7\mathrm{.}67\%$

$7\mathrm{.}07\%$