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 $6$

percent. $($Do not round intermediate calculations. Round the final answers to $2$ decimal places.$)$

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

Cost of retained earnings

$\%$

b$.$ If a $$2\mathrm{.}0$ flotation cost is involved, compute the cost of new common stock $(K_n).$

Cost of new common stock

$ox\%$