Question: 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

Using the data for a firm shown in the following table, calculateUsing 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.What is the cost of retained earnings? (Round your percent to two decimal places).What is the cost of new common stock? (Round your percent to two decimal places.)

Projected Current market Dividend dividend per price per share growth rate share next year $53.00 9% $3.18 Underpricing Flotation cost per share per share $2.50 $2.50

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