Ellington Electronics wants you to calculate its cost of common stock. During the next $12$ months, the company expects to pay dividends $($D$1)$ of $$1\mathrm{.}50$ per share, and the current price of its common stock is $$30$ per share. The expected growth rate is $8$ percent. $($Do not round intermediate calculations. Round the final answers to $2$ decimal places.$)$

a$.$ Compute the cost of retained earnings $($Ke$).$

Cost of retained earnings $13$ Numeric Response $1.$Edit Unavailable. $13$ correct.$\%$

b$.$ If a $$2$ flotation cost is involved, compute the cost of new common stock $($Kn$).$

Cost of new common stock $13\mathrm{.}36$ Numeric Response $2.$Edit Unavailable. $13\mathrm{.}36$ incorrect.$\%$

the first part is correct but the second part is incorrect