The Calcite Company paid annual dividends of $$2\mathrm{.}85$ per year with stock selling for $$48\mathrm{.}10$ per share.

The company is expected to grow at about $3\%$ per year for the foreseeable future. Flotation costs

associated with the sale of common stock are $12\%$ of the proceeds raised. For the Calcite Company,

estimate the following $($to the nearest tenth$)$:

a$.(3$ pts$)$ Cost of equity from the sale of new common stock

b$.(3$ pts$)$ Cost of equity from retained earnings