Reingaart Systems is expected to pay a $$3\mathrm{.}4$ dividend at year end $(D1=$$$3\mathrm{.}4,$ the dividend is expected to grow at a constant rate of $5\mathrm{.}5\%$ a year, and the common

stock currently sells for $$65$ a share. The before$-$tax cost of debt is $6\mathrm{.}7\%,$ and the tax

rate is $26\%.$ The target capital structure consists of $51\%$ debt and $49\%$ common

equity. What is the company's WACC if all equity is from retained earnings?

$7\mathrm{.}79\%$

$6\mathrm{.}69\%$

$7\mathrm{.}49\%$

$6\mathrm{.}89\%$

$7\mathrm{.}19\%$