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.)

Current market price per share $37.00,

Dividend growth rate 8%,

Projected dividend per share next year $1.85

Underpricing per share $1.00

Flotation cost per share $2.25