Problem 11-16 (Algo) Costs of retained earnings and new common stock [LO11-3] Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $2.40 per share, and the current price of its common stock is $30 per share. The expected growth rate is 6 percent. a. Compute the cost of retained earnings (Ke). Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. b. If a $2 flotation cost is involved, compute the cost of new common stock (Kn). Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places