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What is the cost of the firm retained earnings

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Reference no: EM132968314

Problem 1: A firm's common stock is currently selling for $78 per share. Last year's dividend payment was $2.50 per share. The expected constant annual growth rate for the dividend payment is 8%. The flotation cost is $5.00 per share. What is the cost of the firm's retained earnings?

Select one:

A. 11.70%
B. 12.46%
C. 11.46%
D. None of these answers are correct

Reference no: EM132968314

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