Please answer both parts:

A. Burnwood Tech plans to issue some $60 par preferred stock with a 8% dividend. A similar stock is selling on the market for $75. Burnwood must pay flotation costs of 6% of the issue price. What is the cost of the preferred stock? Round your answer to two decimal places.

B. Summerdahl Resort's common stock is currently trading at $34 a share. The stock is expected to pay a dividend of $2.50 a share at the end of the year (D₁ = $2.50), and the dividend is expected to grow at a constant rate of 7% a year. What is the cost of common equity? Round your answer to two decimal places.