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Cost of Retained Earnings

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A firm's stock is selling for $78. The next annual dividend is expected to be $2.70. The growth rate is 9%. The flotation cost is $5.00. What is the cost of retained earnings?
A) 13.09%
B) 12.46%
C) 12.75%
D) none of the above.

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Solution Summary

Calculates cost of retained earnings.

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