What is cost of retained earnings

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Reference no: EM13923765

The common stock of Omega Corporation is currently selling for $50 per share. It is expected that Omega will pay a dividend equal to $2 per share this year. In addition, analysts have indicated that the company has been growing at a constant rate of 5 percent, and this growth is expected to continue forever. What is Omega’s cost of retained earnings? (Show work please)

Reference no: EM13923765

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