Royal mediterranean cruise lines common stock is selling for $22 per share. The last dividen was $1.20, and the dividends are expected to grow at a 6% annnual rate. Flotation cost on new stock sales are 5% of the selling price. What is the cost of Royals retained earinings?
a. 12.09%
b. 11.45%
c. 11.78%
d. 5.73%