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 the constant-growth valuation model.(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

Current market

price per share

Dividend

growth rate

Projected

dividend per

share next year

Underpricing

per share

Flotation cost

per share

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$50.0050.00

88%

$2.252.25

$2.002.00

$1.001.00

a. The cost of retained earnings is ____%

(Round to two decimal places.)

b. cost of new common stock __ %