2.Jucely Enterprises' common stock currently trades at $30.00 a share. It is expected to pay an annual dividend of $3.00 a share at the end of the year (D1= $3.00), and the constant growth rate is 6% a year.

a.What is the company's cost of common equity if all of its equity comes from retained earnings?

b.If the company issued new stock, it would incur a 10% flotation cost. What would be the cost of equity from new stock?