What is the after-tax cost of retained earnings

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Reference no: EM132942975

Question - A company has recently paid an annual dividend of $1.50 per share. What is the after-tax cost of retained earnings if dividends are expected to grow indefinitely at the rate of 8% pa and the shares are currently priced at $28.08?

A. 13.77%

B. 4.63%

C. 8.00%

D. 12.77%

Reference no: EM132942975

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