You have determined the following costs of capital:

After$-$tax cost of debt: $6\%$

Cost of preferred stock $10\%$

Cost of retained earnings $14\%$

Cost of new stock $15\%$

The firm expects to have $$700,000$ in additions to retained earnings in the coming year and its optimal capital structure is $5\%$ preferred, $25\%$ debt, and $70\%$ common equity.

Calculate the weighted average cost of capital using retained earnings for the equity component.

Calculate the weighted average cost of capital using newly issued common stock.