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