Question: QUESTION 5 0.25 points Save Answer Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (Dl - 2.50), the dividend is

QUESTION 5 0.25 points Save Answer Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (Dl - 2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $37.50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of45% 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. OA, 9.41% O B. 8.72% C. 7.58% D. 9.94% 0 E. 8.80%

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