The common stock for Beta Corporation sells for \($50.\) If a new issue is sold, the flotation costs are estimated to be 5 percent. The company pays 50 percent of its earnings in dividends, and a \($4\) dividend was recently paid. Earnings per share 5 years ago were \($5.\) Earnings are expected to continue to grow at the same annual rate in the future as during the past 5 years. The firm’s marginal tax rate is 25 percent. Calculate the cost of

(a) internal common equity and

(b) external common equity.