Suppose you are hired as a consultant by The Retainer Inc. to help them estimate the company's cost of capital. You have been provided with the following information: The company just paid a dividend of $0.54 per share (D0=$0.54); the dividend is expected to grow at a constant rate of 5% per year indefinitely (g=5%); its stock is currently selling at $50 a share (P0 = $50); and issuing new shares will incur a flotation cost of 5% a share. Based on the discounted cashflow approach, what is the cost of retained earnings for The Retainer Inc.?