Question $3$

$5$ pts

Brookes Corporation has an expected dividend $(D_1)$ of $$1\mathrm{.}60,$ a current stock price $(P_0)$ of $$40,$ and a constant growth rate of $6\mathrm{.}1\%.$ If new common stock is issued, the company will incur flotation costs of $6\%.$ What is the company's cost of retained earnings?

Your answer should be between $9\mathrm{.}28$ and $12\mathrm{.}82,$ rounded to $2$ decimal places, with no special characters.