Umbrella Corp is expected to pay a dividend at year end of D1 = $2.00. This dividend is expected to grow at a constant rate of 5.00% per year, and the common stock is currently valued at $75.00 per share. The before-tax cost of debt is 8.00%, and the tax rate is 25%. The target capital structure consists of 40% debt and 60% common equity. What is the company's WACC?

Group of answer choices

4.00%

7.80%

5.40%

8.05%

7.00%