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 $45.00 Dividend growth rate 7% Projected dividend per share next year $1.80 a. The cost of retained earnings is%. (Round to two decimal places.) Underpricing per share $1.50 Flotation cost per share $1.50

Rotained earnings versus new common stock Using the data for a firm shown in the following table, calculate the cost of rotained earnings and the cost of new common stock using the constant-growth valuation modet. (Click on the icon here P in order to copy the contents of the data table below into a spreadsheet.) a. The cost of retained earnings is \%. (Round to two decimal places.)