Sorensen Systems Inc. is expected to pay a $2.6 dividend at year end, the dividend is expected to grow at a constant rate of 5.6% a year, and the common stock currently sells for $62 a share. The before-tax cost of debt is 8.6%, and the tax rate is 30%. The target capital structure consists of 40% debt and 60% common equity. What is the companys WACC if all the equity used is from retained earnings?