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Allison Engines Corporation has established a target capital structure of 4 0 percent debt and 6 0 percent common equity. The current market price of

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=$42.7; its last dividend was DO =$5.7, and its expected dividend growth rate is 6 percent. What will Allison's marginal cost of retained earnings, rs, be?
18.15%
19.15%
20.15%
17.15%
16.15%
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