COST OF RETAINED EARNINGS (INTERNAL EQUITY). A firm's common stock currently sells for $28 per share. The firm recently paid a dividend of $3 per share on its common stock, and investors expect the dividend to grow at a constant rate of 5 percent per year. Calculate the firm's cost of retained earnings using the DCF approach.

		16.25%
		16.72%
		15.71%
		None of the above