Part 1

Barton Industries expects next year's annual dividend, D₁, to be $1.80 and it expects dividends to grow at a constant rate g_L = 4.9%. The firm's current common stock price, P₀, is $24.20. If it needs to issue new common stock, the firm will encounter a 4.8% flotation cost, F. Assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. 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.

Part 2

What is the 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.