You have collected the following information about a company:

Source of capital	Market value	Before-tax cost
Long-term debt	$110,000	8%
Preferred stock	$50,000	11%
Common equity	$510,000	19% for retained earnings 22% for new common stock
Total	$670,000

The company's total (federal plus state) marginal tax rate is 23%.

1)What is the weighted average cost of capital, if all common equity comes from retained earnings?

2)What is the weighted average cost of capital, if all common equity comes from newly issued stock?