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5) Please help! The Evanec Company's next expected dividend, D1, is $2.96; its growth rate is 6%; and its common stock now sells for $34.00.
5) Please help!
The Evanec Company's next expected dividend, D1, is $2.96; its growth rate is 6%; and its common stock now sells for $34.00. New stock (external equity) can be sold to net $28.90 per share. a. What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. % 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? Do not round intermediate calculations. Round your answer to two decimal places. %Step by Step Solution
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