Question
1. The Evanec Company's next expected dividend, D 1 , is $3.33; its growth rate is 6%; and its common stock now sells for $39.
1. The Evanec Company's next expected dividend, D1, is $3.33; its growth rate is 6%; and its common stock now sells for $39. New stock (external equity) can be sold to net $35.10 per share.
A. What is Evanec's cost of retained earnings, rs? Round your answer to two decimal places. Do not round your intermediate calculations.
B. What is Evanec's percentage flotation cost, F? Round your answer to two decimal places.
C. What is Evanec's cost of new common stock, re? Round your answer to two decimal places. Do not round your intermediate calculations.
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Capital Market Finance
Authors: Patrice Poncet, Roland Portait, Igor Toder
1st Edition
3030845982, 978-3030845988
