Question 3 2 pts Builtrite's common stock is currently selling for $42 a share and the firm just paid an annual dividend of $1.20 per share. Management believes that dividends and earnings should grow at 8% annually. Based on this, and a marginal tax rate of 34%, what is the cost of common stock (also known as the cost of retained earnings)? 11.10% 7.17% 7.32% 10.86% Question 4 2 pts Builtrite's common stock is currently selling for $54 a share and the firm just paid an annual dividend of $2.10 per share. Management believes that dividends and earnings should grow at 9% annually. Since new stock would need to be sold to finance an expansion, Builtrite expects flotation costs to be 5% of the expected selling price of $52 a share. Based on this, and a marginal tax rate of 34%, what is the cost of new common stock? O 13.25% 09.00% O 8.75% 13.64%