Determining the cost of retained earnings


Question: 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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Finance Basics: Determining the cost of retained earnings
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