Question $13$

Investors estimate that the Walsh Corporation will pay a $$2\mathrm{.}50$ per$-$share dividend one year from now, and that the dividend will grow at an

$8\%$ rate for the foreseeable future. The company's stock is currently selling for $$50$ per share. What is Walsh Corporation's cost of retained

earnings?

$18\mathrm{.}00\%$

$5\mathrm{.}00\%$

$10\mathrm{.}50\%$

$13\mathrm{.}00\%$