Cost of equty) The common stock for the Bestsoid Corporation solis for $57. If a new issue is sold, the flotation costs are estimated fo be 11 percent. The company pays 50 percont of ts eamings in dividends, and a $3.00 dividend was recently paid. Earrings per ghare 4 years ago were $4,00. Eamirigs are expecied to continue fo crow at the same annual fate in the future as during the past 4 yeass. The firmis marginal tax rate is 32 percent, Calculiter the cost of (a) intemal common equity and (b) extemal cormon equity. a. What is the fitri's cost of intemal oomman equity? (Found to two docimal placess)