7. Problem 10.04 (Cost of Equity with and without Flotation) Jarett \& Sons's common stock currently trades at $28.00 a share. It is expected to pay an annual dividend of $1.50 a share at the end of the year (O1=$1.50), and the constant growth rate is 6% a vear. a. What is the company's cost of common equity if all of its equity comes from retained earnings? Do not round intermed ste calculations. Round your answer to two decimal pleces. \%): b. If the company issued new stock, it would incur a 10 s flotation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round vour answer to two deciman plsces. % 7. Problem 10.04 (Cost of Equity with and without Flotation) Jarett \& Sons's common stock currently trades at $28.00 a share. It is expected to pay an annual dividend of $1.50 a share at the end of the year (O1=$1.50), and the constant growth rate is 6% a vear. a. What is the company's cost of common equity if all of its equity comes from retained earnings? Do not round intermed ste calculations. Round your answer to two decimal pleces. \%): b. If the company issued new stock, it would incur a 10 s flotation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round vour answer to two deciman plsces. %