Tip Top Hats $($TTH$)$ is expected to grow at a $2$ percent rate for as long as it is in business. Currently the company's common stock is selling for $$20$ per share. The most recent dividend paid by TTH was $$3\mathrm{.}50$ per share. If new common stock is issued, TTH will incur flotation costs equal to $9\mathrm{.}0$ percent.

What is the company's cost of retained earnings? Round your answer to two decimal places. $\_\_\_\_\_\%$

What is its cost of new common equity? Round your answer to two decimal places. $\_\_\_\_\_\_\%$