Sorensen Systems Inc. is expected to pay a $3.50 dividend at year end (D1 = $3.50), the dividend is expected to grow at a constant rate of 6.00% a year, and the common stock currently sells for $42.50 a share. The before-tax cost of debt is 8.50%, and the tax rate is 40%. The target capital structure consists of 55% debt and 45% common equity. What is the companys WACC if all the equity used is from retained earnings? Do not round your intermediate calculations. Group of answer choices 8.72% 7.58% 9.41% 9.21% 8.80%