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Sun Instruments expects to issue new stock at $32 a share with estimated flotation costs of 5 percent of the market price. The company currently

image text in transcribed Sun Instruments expects to issue new stock at $32 a share with estimated flotation costs of 5 percent of the market price. The company currently pays a $1.90 cash dividend and has a 8 percent growth rate. What are the costs of retained earnings and new common stock? Round your answers to two decimal places. Costs of retained earnings: % Cost of new common stock: %

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