Your company tock trades for $52.50 per share

Your company tock trades for $52.50 per share. It is expected to pay $2.50 dividend at year end and the dividend is expected to grow at a constant rate of 5% a year. The before tax cost of debt is 7.50% and the tax rate is 40%. The target capital structure consists of 55% debt and 45% common equity. What is your company WACC if all the equity used from reinvested earnings?is it 8.87% or 6.87% or9.55% or 7.87%