A company's stock currently sells for $50 per share, currently pays a dividend of $2, has a constant growth rate of 5%, and will incur flotation costs of 15% when it issues new common stock. What is the firm's cost of new stock, re? O9.20% 9.94% 10.50% 11.75% O 12.30% Question 8 Loring Inc. is expected to pay a $2.80 dividend at the end of the year, the dividend is expected to grow at a constant rate of 8% per year, and the common stock currently sells for $50 a share. The before-tax cost of debt is 6% and the corporate tax rate is 40%. The target capital structure consists of 30% debt and 70% equity. What is the company's weighted average cost of capital (WACC) if all the equity used is from retained earnings? 10.82% O 10.60% 11.32% 10 pts O 11.55% O None of the above