2. Problem 10.04 (Cost of Equity with and without Flotation) Yarett s. Sons' commen stock currently trades at $32.00 a share. It is expected to pay an annual dividend of $1.75 a share at the end of the year (Di =$1.75 ), and the constant growth rate is 3 th a year. 8. What is the compsny's cost of common equity if all of its equity comes from retained earnings? Do not round intermediate calculstions. Round your answer to two decimal places. b. It the combany iswee new stock, it would incur a 14 wh fotation cost. What would be the cost of equity from new stock7 bo not round intermediate calculations. Round vour answer to two decimal places