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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 = $50.6; its last dividend was DO =$2.3, and its expected dividend growth rate is 6.9 percent. What will Allison's marginal cost of retained earnings, rs, be? 12.53% 11.76\% 11.26% 12.03% 13.0396

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