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The following information pertains to the common equity of Funtastic Furniture Co: Current selling price - $68.00 Constant growth rate - 8.0% Most recently paid

The following information pertains to the common equity of Funtastic Furniture Co:

Current selling price - $68.00

Constant growth rate - 8.0%

Most recently paid dividend - $3.50

Flotation costs - 10%

Marginal tax rate - 40%

What is the company's cost of retained earnings and what is the company's cost of new common stock? Please show work to be rated.

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