12-9A. (Cost ofequity) The common stock for the Bestsold Corporation sells for $58. If a new

, issue is sold, the flotation costs are estimated to be 8 percent. The company pays 50 percent of its earnings in dividends, and a $4 dividend was recently paid. Earnings per share five years ago were

$5. Earnings are expected to continue to grow at the same annual rate in the future as during the past five years. The firm's marginal tax rate is 34 percent. Calculate the cost of

(a) internal common and

(b) external common.