Problem $21-02$

$5.$

Sun Instruments expects to issue new stock at $$39$ a share with estimated flotation costs of $7$ percent of the market price. The company currently pays a $$2\mathrm{.}40$ cash dividend and has a $3$

$6.$ percent growth rate. What are the costs of retained earnings and new common stock? Round your answers to two decimal places.

Costs of retained earnings: $q,\%$

Cost of new common stock: $\%$