Sorensen Systems Inc. is expected to pay a S2.50 dividend at year end (D-$2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $37.50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. 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. 9.41% 8.72% o 7.58% 9.94% 8.80%