Retained earnings versus new common stock Using the data for a firm shown in the following table, calculate the cost of retained earnings and the cost of new common stock using the constant-growth valuation model. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Projected Current market Dividend dividend per price per share growth rate share next year $64.00 7% $3.20 Underpricing Flotation cost per share per share $2.50 $2.50 ..... a. The cost of retained earnings is%. (Round to two decimal places.)