1. Benders common stock has been selling at $24.50. They recently paid a dividend of $1.21 from EPS of $2.44. Five years ago earnings were $1.50. Earning and dividend growth are consistent and expected to remain constant over the foreseeable future. If new issuance of stock was necessary, flotation costs would run 15% of market. calculate the cost of retained earnings and the cost of new stock issuance