The management of a conservative firm has adopted a policy of never letting debt exceed 40 percent of total financing. The firm will earn $16,000,000 but distribute 40 percent in dividends, so the firm will have $9,600,000 to add to retained earnings. Currently the price of the stock is $40; the company pays a $2 per share dividend, which is expected to grow annually at 10 percent. If the company sells new shares, the net to the company will be $38. Given this information, what is the a. cost of retained earnings? Round your answer to one decimal place. % b. cost of new common stock? Round your answer to one decimal place. % The rate of interest on the firm's long-term debt is 9 percent and the firm is in the 32 percent income tax bracket. If the firm issues more than $2,400,000, the interest rate will rise to 10 percent. Given this information, what is the C. cost of debt? Round your answer to one decimal place. % d. cost of debt in excess of $2,400,000? Round your answer to one decimal place. %