The current year profit of Leyland Vehicles Inc. is 500.000 and its expected profits for the next year is 600.000 The company is considering a new strategic investment totalling 100.000.000. 40% of the new investment will be financed by retained earnings and the rest will be financed by issuing new shares. The general assembly of the company decided to make a public offering for new shares by restricting thepreemptive rights of the outstanding shareholders. Flotation cost per share is 0,40. It is estimated that the shares can be sold at 6,7. and the current dividend rate is 30%. Face value of one share is 1. Compute the cost of newly issued shares and cost of the retained earnings.