Question: A firm's stock is selling for $81. The next annual dividend is expected to be $3.00. The growth rate is 6%. The flotation cost is

A firm's stock is selling for $81. The next annual dividend is expected to be $3.00. The growth rate is 6%. The flotation cost is $3. What is the cost of retained earnings?

A. 9.70

B. 7.55

C, 11.15

D. 8.35

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