The Gordon Company currently pays an annual common stock dividend of $4.00 per share. Its dividend payments have been growing at a steady rate of 6 percent per year, and this rate of growth is expected to continue for the foreseeable future. Gordon's common stock is currently selling for $66.25 per share. The company can sell additional shares of common stock after flotation costs at a net price of $53.00 per share.

What is the company's cost of internal equity capital?

What is the company's cost of external equity capital?