Problem 10.04 (Cost of Equity with and without Flotation) chook Problem Walk Through Jarett M Sora's common stock currently trades at $26.00 a share. It is expected to pay an annual dividend of $3,00 a shar at the end of the year (D1 - $3,00), and the constant growth rates Year What is the company's cost of common equity it all of its equity comes from retained earnings? Do not round Intermediate calculations, Hound your answer to two decimal places b. ll the company issued new stock, I would incur a 14% rotation cost. What would be the cost of equity from new stock? Do not round Intermediate calculations. Hound your answer to two decimal places