Your company stock trades for $52.50 per share. It is expected to pay a $2.50 dividend at year end, and the dividend is expected to grow at a constant rate of 5% a year. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of 55% debt and 45% common equity. What is your company's WACC if all the equity used is from reinvested earnings? A. 8.87% B. 6.87% C. 7.87% D. 9.55%