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Tip Top Hats $($TTH$)$ is expected to grow at a $2$ percent rate for as long as it is in business Currently the company's common stock is selling for $ $25$ per share. The most recent dividend paid by TTH was $$2\mathrm{.}00$ per share. If new common stock is issued, TTH will incur flotation costs equal to $7\mathrm{.}0$ percent.

What is the company's cost of retained earnings? Round your answer to two decimal places

$\%$

What is its cost of new

common equity? Round your