Rosin Systems Inc. is expected to pay a $2.80 dividend at year end (D1 = $2.80), the dividend is expected to grow at a constant rate of 8% a year, and the common stock currently sells for $50 a share. The before-tax cost of debt is 6%, and the tax rate is 40%. The target capital structure consists of 30% debt and 70% common equity. What is the companys WACC if all the equity used is from retained earnings?

Question 7 options:

	10.82%
	10.60%
	11.32%
	11.55%