(Cost of equity) The common stock for the Bestsold Corporation sells for $56. If a new issue is sold, the flotation costs are estimated to be 8 percent. The company pays 70 percent of its earnings in dividends, and a $4.90 dividend was recently paid. Earnings per share 6 years ago were $5.00. Earnings are expected to continue to grow at the same annual rate in the future as during the 6 past 6 years. The firm's marginal tax rate is 36 percent. Calculate the cost of (a) internal common equity and (b) external common equity. 6 a. What is the firm's cost of internal common equity? % (Round to two decimal places.)