Retained earnings versus new common stock$$ Using the data for a firm shown in the following$$ table, calculate the cost of retained earnings and the cost of new common stock using the$$ constant$-$growth valuation model.$($Click on the icon here in order to copy the contents of the data table below into a$$ spreadsheet.$)$

Current market

price per share

Dividend

growth rate

Projected

dividend per

share next year

Underpricing

per share

Flotation cost

per share

$$$$56\mathrm{.}00$

$8\%$

$$$$3\mathrm{.}92$

$$$$2\mathrm{.}00$

$$$$2\mathrm{.}50$

Question content area bottom

Part $1$

a$.$ The cost of retained earnings is

$$

enter your response here$\%.($Round to two decimal$$ places.$)$