HOW ALL YOUR WORK. ANSWER WITHOUT WORK SHOWN WILL NOT RECEIVE ANY CREE 3. Quinlan Enterprises stock trades for $52.50 per share. It is expected to pay a $2.50 dividend at year end (D, $2.50), 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 25%. 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 (i.e. no new common stock issued)? WACC= Wa Ta (1-7) + Wps ps +Ws * T's D Po