7. Problem 10.07 Click here to read the eBook: The Cost of Retained Earnings, rs Click here to read the eBook: Cost of New Common Stock, re COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION The Evanec Company's next expected dividend, D1, is $3.14; its growth rate is 4%; and its common stock now sells for $30. New stock (external equity) can be sold to net $25.50 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. rs = 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? Round your answer to two decimal places. Do not round your intermediate calculations. re = Grade It Now Save & Continue Continue without saving