J and Son's common stock is currently trading at Rs 300 a share. The stock is expected to pay a dividend of Rs 30 a share at the end of the year (D₁ = Rs 30), and the dividend is expected to grow at…

J and Son's common stock is currently trading at Rs 300 a share. The stock is expected to pay a dividend of Rs 30 a share at the end of the year (D₁ = Rs 30), and the dividend is expected to grow at a constant rate of 5 percent a year. If the company were to issue external equity, it would incur a 10 percent floatation cost. What are the costs of retained earnings and common stock?