STOCK LETT Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $1.70 per share, and the current price of its common stock is $34 per share. The expected growth rate is 8 percent. a. Compute the cost of retained earnings (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Cost of retained earnings % b. If a $2 flotation cost is involved, compute the cost of new common stock (Kn). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Cost of new common stock C % < Prev 4 of 8 Next > Rain... (8) < 1 7:02 PM 4/22/2022 D