6) A firm has common stock with a market price of $100 per share and an expected dividend of $5.61 per share at the end of the coming year. A new issue of stock is expected to be sold for $98, with $2 per share representing the underpricing necessary in the competitive capital market. Flotation costs are expected to total \$1 per share. The dividends paid on the outstanding stock over the past five years are as follows: Calculate the cost of this new issue of common stock. ( 15%) 7) Long Island Trading Corporation is considering issuing long-term debt. The debt would have a 30 -year maturity and a 10 percent coupon rate. In order to sell the issue, the bonds must be underpriced at a discount of 5 percent of face value. In addition, the firm would have to pay flotation costs of 5 percent of face value. The firm's tax rate is 21 percent. Given this information, calculate the before-tax and after-tax cost of debt for Long Island Trading. (15\%)