COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION The Evanec Companys next expected dividend, D1, is $3

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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?

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Fundamentals Of Financial Management Concise Edition

ISBN: 9781285065137

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Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Jul 15, 2024 10:09 AM

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COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION The Evanec Companys next expected dividend, D1, is $3

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