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% places. % Jarett & Sons' common stock currently trades at $36.00 a share. It is expected to pay an annual dividend of $2.75 a
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Jarett & Sons' common stock currently trades at $36.00 a share. It is expected to pay an annual dividend of $2.75 a share at the end of the year (Dl = $2.75), and the constant growth rate is 4% a year. a. What is the company's cost of common equity if all of its equity comes from retained earnings? Do not round intermediate calculations. Round your answer to two decimal places. 0/0 b. If the company issued new stock, it would incur an 8% flotation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round your answer to two decimal places. 0/0
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