Question: Question 7 - WACC [3 points]: Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (i.e., D 1 = $2.50), the

Question 7 - WACC [3 points]: Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (i.e., D₁ = $2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $52.50 a share. The before-tax cost of debt is 7.50%, and the marginal tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the company

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