XYZ Systems is expected to pay a $$3\mathrm{.}00$ dividend at year end, the dividend is expected to grow at a constant rate of $7\%$ a year, and the common stock currently sells for $$60$ a share. The before$-$tax cost of debt is $8\%,$ and the tax rate is $40\%.$ The target capital structure consists of $60\%$ debt and $40\%$ common equity. What is the company's WACC if all equity is from retained earnings?