Murray Motor Company wants you to calculate its cost of common stock. During the next $12$ months, the company expects to pay dividends $(D_1)$ of $$1\mathrm{.}80$ per share, and the current price of its common stock is $$36$ per share. The expected growth rate is $9$ percent.

a$.$ Compute the cost of retained earnings $(Ke)$

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Cost of retained earnings

Cost of retained earnings $,\%$

b$.$ If a $$3$ flotation cost is involved, compute the cost of new common stock $(K_n).$

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Cost of new common stock