Question: Problem 21-02 Sun Instruments expects to issue new stock at $39 a share with estimated flotation costs of 6 percent of the market price. The

Problem 21-02

Sun Instruments expects to issue new stock at $39 a share with estimated flotation costs of 6 percent of the market price. The company currently pays a $2.10 cash dividend and has a 7 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: %

Cost of new common stock: %

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