Problem $21-02$

Sun Instruments expects to issue new stock at $$34$ a share with estimated flotation costs of $8$ percent of the market price. The company currently pays a $$2\mathrm{.}10$ cash dividend and has a $7$ percent growth rate. What are the costs of retained earnings and new common stock? Round your answers to two decimal places.

Costs of retained earnings: $\%$

Cost of new common stock: $\%$