1. Following is information about the common equity of Piazza Furniture Company:

Current selling price $58.00

Constant growth rate 3.0%

Most recently paid dividend, D₀ $2.50

Flotation costs 7.5%

Marginal tax rate 21.0%

1. What is Piazzas cost of retained earnings?
2. What is Piazzas cost of new common stock?
3. Suppose Piazzas total Capital structure is $100M where 35% of that capital structure is long-term debt at an annual interest rate of 9%, what is the annual cost of debt incurred by Piazza?