Tip Top Hats $($TTH$)$ is expected to grow at a $4$ percent rate for as long as it is in business. Currently the company's common stock is selling for $$27$ per share. The most recent dividend paid by TTH was $$2\mathrm{.}50$ per share. If new common stock is issued, TTH will incur flotation costs equal to $8\mathrm{.}0$ percent.

What is the company's cost of retained earnings? Round your answer to two decimal places.

$\%$

What is its cost of new common equity? Round your answer to two decimal places.Tip Top Hats $($TTH$)$ is expected to grow at a $4$ percent rate for as long as it is in business. Currently the company's common stock is selling for $$27$ per share.

The most recent dividend paid by $TH$ was $$2\mathrm{.}50$ per share. If new common stock is issued, $TTH$ will incur flotation costs equal to $8\mathrm{.}0$ percent.

a$.$ What is the company's cost of retained earnings? Round your answer to two decimal places.

$\%$

b$.$ What is its cost of new common equity? Round your answer to two decimal places.

$\%$