Jarett & Sons' common stock currently trades at $21.00 a share. It is expected to pay an annual dividend of $1.25 a share at the end of the year (D1 = $1.25), and the constant growth rate is 4% a...

Extracted text: Jarett & Sons' common stock currently trades at $21.00 a share. It is expected to pay an annual dividend of $1.25 a share at the end of the year (D1 = $1.25), and the constant growth rate is 4% a year. (a) What is the company's cost of common equity if all of its equity comes from retained earnings? (b) If the company issued new stock it would incur a 19% flotation cost. What would be the cost of equity from new stock?