Schadler Systems is expected to pay a $1.80 dividend at year end (D1), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $50.00 a share. The before-tax cost of debt is 5.50%, and the tax rate is 46%. The target capital structure consists of 42% debt and 58% common equity. What is the companys WACC if all equity is from retained earnings?