adjustment. Quantitative Problem: Barton Industries expects next year's annual dividend, D1, to be $1.72 and it expects dividends to grow at a constant rate gL = 4.1%. The firm's current common stock price, Po, is $21.50. If it needs to issue new common stock, the firm will encounter a 5.2% flotation cost, F. Assume that the cost of equity calculated without the flotation adjustment is 12.1% and the cost of old common equity is 11.4%. What is the flotation cost adjustment that must be added to its cost of retained earnings? Do not round intermediate calculations. Round your answer to two decimal places. 3.68 0% What is the cost of new common equity considering the estimate made from the three estimation methodologies? Do not round intermediate calculations. Round your answer to two decimal places. %