#2 An analyst gathered the following information about a company and the market: $25.00 $2.50 40% Current market price per share of common stock Most recent dividend per share paid on common stock (D.) Expected dividend payout rate Expected return on equity (ROE) Beta for the common stock Expected rate of return on the market portfolio Risk-free rate of return 15% 1.2 13% 4% Calculate the cost of retained earnings for the company in more than one way