Expected cash dividends are $2.00, the dividend yield is 9%, flotation costs are 8% of price, and the growth rate is 3%. Compute cost of new common stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

12.53%

14.88%

13.78%

12.78%

A firm's stock is selling for $77. The next annual dividend is expected to be $4.00. The growth rate is 7%. The flotation cost is $8. What is the cost of retained earnings? (Round your answer to 2 decimal places.)

10.04%

12.19%

13.64%

10.84%