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Allison Engines Corporation has established a target capital structure of 40 percent debt and 60 percent common equity. The current market price of the firm's

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Allison Engines Corporation has established a target capital structure of 40 percent debt and 60 percent common equity. The current market price of the firm's stock is PO = $59.2; its last dividend was DO = $4.7, and its expected dividend growth rate is 5.3 percent. What will Allison's marginal cost of retained earnings, rs, be? 13.66% 13.46% 13.86% 13.26% 13.06%

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