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Builtrite's common stock is currently selling for $48 a share and the firm just paid an annual dividend of $2.30 per share. Management believes that

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Builtrite's common stock is currently selling for $48 a share and the firm just paid an annual dividend of $2.30 per share. Management believes that dividends and earnings should grow at 7% 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)? O 11.8% 12.1% O 7.99% 9.83%

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