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A firm's stock is selling for $60. The next annual dividend is expected to be $3.00. The growth rate is 4%. The flotation cost is

A firm's stock is selling for $60. The next annual dividend is expected to be $3.00. The growth rate is 4%. The flotation cost is $5.00. What is the cost of retained earnings?

8.0%

9.0%

10.0%

none of these

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