Cost of equity from new common stock, Financial Management

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Weaver Chocolate Co. expects to gain $3.50 per share during the present year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its common stock presently sells for $32.50 per share. New stock can be sold to the public at the present price, but a flotation cost of 5% would be incurred. What would be the cost of retained earnings common equity (r_s) for Weaver Chocolate Co.? What would be the cost of equity from new common stock (r_e)?

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