Retained earnings versus new common stock Using the data for a firm shown in the following table, calculate the cost of retained eamings and the cost of new common stock using the constant-growth valuation model. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Projected dividend per price per share growth rate share next year $3.25 Current market Dividend Underpricing Flotation cost per share $1.00 per share $1.75 $65.00 8% a. The cost of retained earnings is %. (Round to two decimal places.)

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