Sorensen Systems. Inc, is expected to pay a $2.10 dividend at year end (D1=52.10), the dividend is expected to grow at a constant rate of 5.00% a year, and the common stock currently seils for $37.50 a share. The before-tax cost of debt is 8.0090, and the tax rate is 25%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC if all the equity used is from retained earnings? Do not cound your intermediate calculations, a. 8,53% D. 8.30% E. 7.07% . 8,07\% 8.68%