Question: Answer question with excel functions showing all steps; Using the data for a firm shown in the following table, calculate the cost of retained earnings

Answer question with excel functions showing all steps;

Using the data for a firm shown in the following table, calculate the cost of retained earnings and the cost of new common stock using the constant-growth valuation model

Current market price per share $48

Dividend growth rate 8%

Projected dividend per share next year $1.92

Underpricing per share $1.00

Flotation cost per share $2.25

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