Zeta Corporation wishes to determine its cost of common stock equity The market price of its common stock is $75 per share. The fimm expects to pay a dividend of $9.00 at the end of the coming year 2013 and has a growth rate of 2.5% What is the cost of retained earnings? 12% O 15 % O 3% None of the above QUESTION 36 To determine its cost of new common stock, Zeta Corporation has estimated that on average, new shares can be sold for $70 a $6.00-per- share underpricing is due to the competitive nature of the market. A second cost associated with a new issue is flotation costs of $6.00 per share that would be paid to issue and sell the new shares. The firm expects to pay a dividend of $9.00 at the end of the coming year 2013 and has a growth rate of 2.5%. What is the cost of newly issued common Stock? m= (D1 Nn)+g 0 18 % 3% 16% O None of the above