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7. Problem 10.07 (Cost of Common Equity with and without Flotation) eBook The Evanec Company's next expected dividend, D1, is $2.69; its growth rate
7. Problem 10.07 (Cost of Common Equity with and without Flotation) eBook The Evanec Company's next expected dividend, D1, is $2.69; its growth rate is 7%; and its common stock now sells for $30.00. New stock (external equity) can be sold to net $27.00 per share a. What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. r = % 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. Te = %
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