COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION The Evanec Companys next expected dividend, D1, is $3
Question:
COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION The Evanec Company’s next expected dividend, D1, is $3 18; its growth rate is 6%; and its common stock now sells for $36 00. New stock (external equity) can be sold to net $32 40 per share.
a. What is Evanec’s cost of retained earnings, rs?
b. What is Evanec’s percentage flotation cost, F?
c. What is Evanec’s cost of new common stock, re?
AppendixLO1
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals Of Financial Management Concise Edition
ISBN: 9781285065137
8th Edition
Authors: Eugene F. Brigham, Joel F. Houston
Question Posted: