8. The share of a company is currently selling for 300. It wants to finance its capital expenditures of *1000 million either by retaining earnings or selling new shares. If the company sells new shares, the issue price will be 255. The dividend per share next year is 30 and it is expected to grow at 7.5 per cent. Calculate (i) the cost of internal equity (retained earnings) and (ii) the cost of external equity (new issue of shares).