S. Systems Inc. pays a $6 current dividend (D0=$6), the dividend is expected to grow at a constant rate of 8% a year, and the common stock currently sells for $45 per share. thebefore tax cost of debt is 12% and the tax rate is 40%. The target capital structure consists of 50% debt and 50% common equity. What is the company`s WACC if all the equity used is from retained earnings?