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Builtrite's common stock is currently selling for $66 a share and the firm just paid an annual dividend of $3.20 per share. Management believes that
Builtrite's common stock is currently selling for $66 a share and the firm just paid an annual dividend of $3.20 per share. Management believes that dividends and earnings should grow at 9% 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)? 09.71% O 10.0% O 14.3% O 15.2%
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