Jedi Enterprises stock trades for $45 per share. It is expected to pay

a $1.6 dividend at year end, and the dividend is expected to grow at a constant rate of 2.1% a year. The before-tax cost of debt is 5.4%, and the tax rate is 35%. The target capital structure consists of 40% debt and 60% common equity. What is the company’s WACC (in percent) if all the equity used is from reinvested earnings?

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