Read each of the following statements, and indicate whether ach statement is true or false. Statement Firms will raise all the common equity they can from retained earnings before issuing new common stock, because capital from retained earnings is less expensive than capital raised from issuing new common stock. The flotation costs associated with the sale of debt securities are greater than those associated with new common stock issues. Firms raise capital from retained earnings only when they cannot issue new common stock due to market conditions outside of their control. Sunny Day Manufacturing Company has a current stock price of $31 per share, and is expected to pay a per-share dividend of 33.80 at the end of next yean. The company's earnings and dividends growth rate are expected to grow at a constant rate of 4.60% into the foreseeable future. If White Lion expects to incur flotation costs of 3.9006 of the value of its newly.raised equity funds, then the fotation-adjusted (net) cost of its new common stock (rounded to two deemal places) should be