Cost of Retained Earnings. Plato Company’s common stock is selling for $50. Last year’s dividend was $4.8 per share. Compute the cost of retained earnings (or internal equity) if both earnings and...

Cost of Retained Earnings. Plato Company’s common stock is selling for $50. Last year’s dividend was $4.8 per share. Compute the cost of retained earnings (or internal equity) if both earnings and dividends are expected to grow at (a) zero percent and (b) a constant rate of 9 percent.