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Time left 0:40:55 Phoenix Systems Inc. is expected to pay a $2.50 dividend at year end, 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 tax rate is 40%. 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? O a. 7.98 % b. 7.67% Oc 8.29% Od 7.07 % Oe. 7.36%