Garden Depot has just paid an annual dividend of $3.5 per share. Analysts expect the firm's dividends to grow by 5% forever. Its stock price is $34.13 and its beta is 0.8. Its bonds have a yield to maturity of 6%, and the risk-premium of its stock over its bonds is 3%.

The risk-free rate is 4% and the expected return on the market portfolio is 6%.

The company is in the process of issuing new common stock, with flotation costs of 11% of the issue price.

What is the cost of equity from retained earnings according to the DCF approach? (Please keep 4 decimal places of your answer.)

What is the cost of equity from retained earnings according to the bond yield plus risk premium approach? (Please keep 4 decimal places of your answer.)

What is your best guess for the cost of equity from retained earnings, using the midpoint of the range? (Please keep 4 decimal places of your answer.)

What is the cost of equity from new common stock, according to the DCF approach with flotation costs? (Please keep 4 decimal places of your answer.)