An analyst gathered the following information about a

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24. An analyst gathered the following information about a company and the market: Current market price per share of common stock $28.00 Most recent dividend per share paid on common stock (D0) $2.00 Expected dividend payout rate 40% Expected return on equity (ROE) 15% Beta for the common stock 1.3 Expected rate of return on the market portfolio 13% Risk-free rate of return 4% Using the discounted cash flow (DCF) approach, the cost of retained earnings for the company is closest to:
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