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Builtrite's common stock is currently selling for $32 a share and the firm just paid an annual dividend of $2.10 per share. Management believes that

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Builtrite's common stock is currently selling for $32 a share and the firm just paid an annual dividend of $2.10 per share. Management believes that dividends and earnings should grow at 8% annually. Based on this, and a marginal tax rate of 34%, what is the cost of common stock (also known as the cost of retained earnings)? 9.96% 15.09% 9.61% 14.56%

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