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7. COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION The Evanec Company's next expected dividend, D 1 , is $3.64; its growth rate is 4%;

7.

COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION

The Evanec Company's next expected dividend, D₁, is $3.64; its growth rate is 4%; and its common stock now sells for $35. New stock (external equity) can be sold to net $31.50 per share.

What is Evanec's cost of retained earnings, r_s? Round your answer to two decimal places. Do not round your intermediate calculations. r_s = %
What is Evanec's percentage flotation cost, F? Round your answer to two decimal places. F = %
What is Evanec's cost of new common stock, r_e? Round your answer to two decimal places. Do not round your intermediate calculations. r_e = %

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