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 $$28$ 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 $8\mathrm{.}0$ percent.

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

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b$.$ What is its cost of new common equity? Round your answer to two decimal places.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 $$28$ per share. The most recent dividend paid by TTH was $$3\mathrm{.}50$ per share. If new common stock is issued, TTH will incur flotation costs equal to $8\mathrm{.}0$ percent.

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

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

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