D Question 19 , ' 2.5 pts ncements - .W [e5 DE Inc.'s current (and optimal) capital structure is 40% debt, 10% preferred stock, . and 50% common equity. CDE is in the 40% tax bracket. The company can issue ES . . up to $20,000,000 1n new bonds at par With a 7% coupon rate; any subsequent amount must carry a 2% premium to compensate investors for added risk. The rm has $21,000,000 in retained earnings for the current period. CDE's common stock n trades at $92 per share and the expected dividend on the common stock at t1 is$3. Floatation costs on a new common stock issue is $2 per share. The company is growing at 10% per year. What is the cost of equity from new common stock? If the answer is 10.45%, enter 10.45 opto Video 1:) Question 20 ABC Inc paid a Dividend of $2.00 per share in the current year. The Dividend is expected to grow at 5% for foreseeable future. The price of ABC stock is $42. What is the cost of Retained earnings for ABC stock? Answer is %