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A firm's stock is selling for $87. The next annual dividend is expected to be $4.00. The growth rate is 7%. The flotation cost is

A firm's stock is selling for $87. The next annual dividend is expected to be $4.00. The growth rate is 7%. The flotation cost is $4. What is the cost of retained earnings? (Round your answer to 2 decimal places.)

A.11.60%

B.10.25%

C.9.45%

D.13.05%

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