Save Submit Assignment for Grading Problem 10.04 (Cost of Equity with and without Flotation) Question 3 of 10 Check My Work (2 remaining) B eBook 11 Problem Walk-Through Jarett & Sons's common stock currently trades at $26.00 a share. It is expected to pay an annual dividend of $1.00 a share at the end of the year (D1 = $1.00), and the constant growth rate is 5% a year. a. What is the company's cost of common equity if all of its equity comes from retained earnings? Do not round intermediate calculations. Round your answer to two decimal places. 7.85 % b. If the company issued new stock, it would incur an 11% flotation cost. What would be the cost of equity from new stock? Do not round Intermediate calculations. Round your answer to two decimal places. % Check My Work (2 remaining) 0-Icon Key Problem 10.04 (Cost of Equity with and without Flotation) Question 3 of 10 Save Submit Assignment for Grading