Question: i meed done now or i will fail! please help! Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (D1=$2.50), the

i meed done now or i will fail! please help!

Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (D1=$2.50), the dividend is expected to grow at a constar rate of 5.50% a year, and the common stock currently sells for $87.50 a share. The before-tax cost of debt is 7.50%, and the tax 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? Do not round your intermediate calculations. a. 7.13% b. 7.21% c. 5.98% d. 6.99% e, 6.85%

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