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Return to question 3 Problem 11-19 10 points Ellington Electronics wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $2.20 per share, and the current price of its common stock is $40 per share. The expected growth rate is 7 percent. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. Compute the cost of retained earnings (Ke). Cost of retained earnings 12.50 % b. If a $2.0 flotation cost is involved, compute the cost of new common stock (Kn). Cost of new common stock 12.79 X%