Quinlan Enterprises stock trades for $52.50 per share. It is expected to pay a $2.50 dividend at year-end (D, = $2.50), and the dividend is expected to grow at a constant rate of 5.50% a year. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of 50% debt and 50% common equity. What is the company's WACC if all the equity used is from reinvested earnings? O 7.67% 7.98% 7.95% 8.29% 07.07%