Weaver Chocolate Co. expects to earn $3.60 per share during the current year, its

expected dividend payout ratio is 60%, its expected constant dividend growth rate (g) is 6.5%,

and its common stock currently sells for $32.50 per share. New stock can be sold to the public at

the current price, but a flotation cost of 8% would be incurred (F = 0.08). What would be the

cost of retained earnings common equity (r_s) for Weaver Chocolate Co.? What would be the cost of equity from new common stock (r_e)?