Sorensen Systems inc, is expected to pay a $2.50 dividend at year end (D1=$2.50), the dividend is expected to growat a constant rate of 5.50% year, and the commonstock currently sells for $87.50 a share. The before-tax cost of debt is 7.50%, and the taxirate 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 round your intermediate calculations. 7.35%5.10%5.69%6.62%7.13%