The management of ZTE1 Company is considering whether to utilize its accumulated profits to finance a capital investment project. Relevant data gathered are as follows: a. The company's ordinary shares have current market value of P100/sh. Costs to be incurred related to issuing new shares will be 8%. b. Dividends paid last year was P10/sh Both earnings and dividends are expected to grow at constant 6 %. c. The company's beta coefficient is 1.25. The return of a market portfolio is 10 % and Treasury bills are paying 8 % interest. ZTE1 Company's A-rated bonds are yielding 12%. Calculate the cost of retained earnings using the Gordon growth model