Sun Instruments expects to issue new stock at $34 a share with estimated flotation costs of 7

Question:

Sun Instruments expects to issue new stock at $34 a share with estimated flotation costs of 7 percent of the market price. The company currently pays a $2.10 cash and has a 6 percent growth rate. What are the costs of retained earnings and new common stock?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...