Reingaart Systems is expected to pay a $3.00 dividend at year end (D1 = $3.00), the dividend is expected to grow at a constant rate of 8.00% a year, and the common stock currently sells for $60 a share. The before-tax cost of debt is 6.00%, and the tax rate is 40%. The target capital structure consists of 70.00% debt and 30.00% common equity. What is the company's WACC if all equity is from retained earnings?

Select the correct answer.

6.70%

6.56%

6.42%

6.98%

6.84%