Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D) of $3.70 per share, and the current price of its common stock is $76 per share. The expected growth rate is 7 percent a. Compute the cost of retained earnings (K). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Cost of retained earnings 5.21 % b. If a $7 flotation cost is involved, compute the cost of new common stock (K). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Cost of new common stock