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 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 reinvested earnings? a. 8.189 b. 8.84% C. 8.50% d. 7.539 e.7.859