Question: Sun Instruments expects to issue new stock at $ 3 4 a share with estimated flotation costs of 5 percent of the market price. The

Sun Instruments expects to issue new stock at $34 a share with estimated flotation costs of 5 percent of the market price. The company currently pays a $1.70 cash dividend and has a 5 percent growth rate. What are the costs of retained earnings and new common stock? Round your answers to two decimal places.

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