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Jarett & Sons's common stock currently trades at $27.00 ashare. It is expected to pay an annual dividend of $1.00 a share atthe end of the year (D1 = $1.00), and the constant growth rate is8% a year. What is the company's cost of common equity if all ofits equity comes from retained earnings? Round your answer to twodecimal places. Do not round your intermediate calculations.%If the company issued new stock, it would incur a 9% flotationcost. What would be the cost of equity from new stock? Round youranswer to two decimal places. Do not round your intermediatecalculations.%
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