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.

Current market price per share	Dividend growth rate	Projected dividend per share next year	Underpricing per share	Flotation cost per share
$31.00	8%	$1.24	$1.00	$2.00

a. The cost of retained earnings is ?%. (Round to two decimal places.)

b.