(Cost of equity) The common stock for the Bestsold Corporation sells for $59. If a new issue is sold, the flotation costs are estimated to be 12 percent. The company pays 50 percent of its earnings in dividends, and a $4.00 dividend was recently paid. Earnings per share 5 years ago were $6.00. Earnings are expected to continue to grow at the same annual rate in the future as during the past 5 years. The firm's marginal tax rate is 35 percent. Calculate the cost of (a) internal common equity and (b) external common equity