URGENT

The firm's stock price is $10, with the $0.80 dividend just paid, expected to grow at 5%. The flotation cost of selling new common stock is $1. The tax rate is 21%. What's the cost of retained earnings (internal equity)? 15% 13.4% 14.33% 11.32% What happens if the firm increases the debt level above the optimal debt/equity level? The cost of debt increases The value of firm decreases The probability of default increases All of the above