3. Problem 10.04 (Cost of Equity with and without Flotation) etlook Problem Walk-Through Jarett Sons's common stock currently trades at $28.00 a share. It is expected to pay an annual dividend of $2.75 a share at the end of the year (0 - $2.79), and the constant growth rate is 8% a year. a. What is the company's cost of common couilty it all of its equity comes from retained earnings? Do not found intermediate calculations. Round your answer to two decimal places b. If the company issued new stock, it would incur a 12% flotation cost. What would be the cost of equity from new stock? Do not found intermediate calculations. Round your answer to two decimal places