Javits & Sons' common stock currently trades at $30 a share. It is expected to pay an annual dividend of $1.50 a share at the end of the year (D1 = $1.50), and the constant growth rate is 7% a year. a. What is the company's cost of common equity if all of its equity comes from retained earnings. Round your answer to two decimal places. ________% b. If the company were to issue new stock, it would incur a 11% flotation cost. What would the cost of equity from new stock be? Round your answer to two decimal places. ___________%