If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. There are two approaches to use to account for fiotation. costs. The first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. Because the investment cost is increased, the project's expected rate of return is reduced so it may not meet the firm's hurdie rate for acceptonce of the project, The second approach invalves adjusting the cost of common equity as follows: Cost of equity from new stock =rs=Pe(1F)D1+g The difference between the flotation-adjusted cost of equity and the cost of equity caiculated without the flotation adjustment represents the flotation cost adjustment. Quantitative Problem: Barton Industries expects next year's annual dividend, Dt, to bet $1.70 and it expects dividends to 9 row at a constant rate 9 a 4.1%h. The firm's current common stock price, Po, is $20.00. If it needs to issue new common stock, the firm will encounter a 5.17 fotation cost, F. What is the flotation cost adjustment that must be added to its cost of retained earnings? Do not round intermediate calculations. Round your answer to two decimal places. What is tha cost of new common equity considering the estimate made from the three estimation methodologies? Do not round intermediate calculations: Round your answer to two decimal places