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    WACC

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    13. 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 constant rate of 5.50% a year, and the common stock currently sells for $67.50 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?
    6.02%
    7.09%
    5.95%
    6.24%
    5.88%

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    https://brainmass.com/business/weighted-average-cost-of-capital/310641

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