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WACC Calculation

Can someone help me out and see if the solution key is wrong here.
Question:
Stock Price : 45
Last Year's Dividend: 5
Dividend Growth Rate: 8%
Cost of Debt: 9%
Tax: 35%
D/E: .4

A. 14.34
B. 15.96
C. 16.86

Solution Key B

When we use Dividend Growth model shouldn't we use D1 instead of D? So in this case D1 would be 5.832 then why is the answer B.

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