. eBook Torch Industries can issue perpetual preferred stock at a price of $73.50 a share. The stock would pay a constant annual dividend of $6,50 a share. What is the company's cost of preferred stock, no? Round your answer to two decimal places. % Check My Work (1 remaining) eBook Problem Walk-Through Jarett & Sons's common stock currently trades at $29.00 a share. It is expected to pay an annual dividend of $1.75 a share at the end of the year (D1 = $1.75), and the constant growth rate is 5% a year. a. What is the company's cost of common equity if all of its equity comes from retained earnings? Do not round intermediate calculations. Round your answer to two decimal places. % b. If the company issued new stock, it would incur a 16% flotation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round your answer to two decimal places. %