A stock that just paid a $3.10 dividend. Dividends have been growing at a 4% rate and the stock is currently selling for $37.50. What is the cost of retained earnings of this firm? answer in percent without symbol. Your Answer: Answer A firm has a target capital structure consisting of 40% debt, 18% preferred stock and the rest retained earnings. The cost of debt (after tax) is 2.0%, the cost of preferred stock is 6.8% and the cost of retained earnings is 12.9%. What is the WACC of this firm? Answer in % without the symbol. Your