ABC 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 company's capital structure consists of 45% common equity and 55% debt.  What is the company’s WACC?

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