Using the data for each 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.

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Projccted dividend per Underpricing Flotation cost Currcnt market Dividend Firm price per shar growth rate share next ycar per share pcr share $50.00 20.00 42.50 19.00 S2.25 1.00 2.00 2.10 $1.00 1.50 2.00 1.70 8% $2.00 0.50 1.00 1.30