P & B manufacturers paid the following dividends during the last years:

2019 $1.26

2018 $1.17

2017 $1.08

2016 $1.00

P & B expects next year dividends will growth at the same rate. P & B expects to issue new common stocks at $40. The investment bank will charge a cost of 3% per share for issuing and selling the stocks.

Calculate the growth rate in dividends and the cost of new common stocks