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.

47.00 0.07 as Percent 1.41 1.00 2.00

Current market price per share $47

Dividend growth rate 7%

Projected dividend per share next year $1.41

Underpricing per share $1.00

Flotation cost per share $2.00

1)The cost of retained earnings is __%

2)The cost of new common stock __%