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Quantitative Problem: Barton Industries expects next year'sannual dividend, D1, to be $2.10 and it expects dividends to growat a constant rate g = 4.1%. The firm's current common stock price,P0, is $24.40. If it needs to issue new common stock, the firm willencounter a 4.5% flotation cost, F. Assume that the cost of equitycalculated without the flotation adjustment is 12% and the cost ofold common equity is 11.5%.What is the flotation cost adjustment that must be addedto its cost of retained earnings? Round your answer to 2 decimalplaces. Do not round intermediate calculations.What is the cost of new common equity considering theestimate made from the three estimation methodologies? Round youranswer to 2 decimal places. Do not round intermediatecalculations.