Sorensen systems inc. is expected to pay a $2.50 dividend at year end (D1=$2.50) the dividend is expected to grow at a constant rate of 5.50% a year the common stock currently sells for $87.50 a share. The before tax cost of debt is 7.50% and the tax rate is 25% the target capital structure consist of 45% debt, and 55%, equity. What is the companies WACC if all the equity used is from retained earnings? Show work