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6. Problem 10.07 (Cost of Common Equity with and without Flotation) eBook The Evanec Company's next expected dividend, D1, is $3.74; its growth rate is

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6. Problem 10.07 (Cost of Common Equity with and without Flotation) eBook The Evanec Company's next expected dividend, D1, is $3.74; its growth rate is 4%; and its common stock now sells for $35.00. New stock (external equity) can be sold to net $28.00 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. F % c. What is Evanec's cost of new common stock, re? Do not round intermediate calculations. Round your answer to two decimal places. %

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