Use the following information to answer questions 4 to 6 Riverhawk Store (RS) dividends have been growing at 3 percent annually and are expected to continue this growth rate indefinitely. The company recently paid a dividend of $1.25 per share. Next year, it expects to add $3 million to retained earnings. RP's common stock is selling for $17.00 per share. The company is expanding and plans to sell new common stock with flotation costs of 4 percent What is the cost of retained earnings for the company? O A 10.67% OB 10.57% O C. 11.45% OD 10.27% OE 11.86% OF 10.89% QUESTION 5 What is the company's cost of new equity? A 10.67% . 10.89% OC 11.45% 12.7% E 10.57%