Quinlan Enterprises stock trades for $52.50 per share. It is expected to pay a $2.50 dividend at year end (D1 =$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 8.50%, and the tax rate is 40%. The target capital structure consists of 40% debt and 60% common equity. What is the company's WACC if all the equity used is from retained earnings (so the firm does not have to issue new shares of common stock)? 7.07%7.36%8.00%8.20%8.29%