The earnings, dividends, and stock price of Larry Technics, Inc. are expected to grow at 7 percent per year after this year. Larrys common stock sells for P23 per share, its last dividend was P2.00 and the company pay P2.14 at the end of the current year. Larry should pay P2.50 flotation cost. Using the dividend growth model, what is the expected cost of retained earnings for Larry Technics, Inc.?