Question
COst OF COMMON eQUItY WIth aND WIthOUt FLOtatION The Evanec Company's next expected dividend, D1, is $3.18; its growth rate is 6%; and its common
COst OF COMMON eQUItY WIth aND WIthOUt FLOtatION The Evanec Company's next expected dividend, D1, is $3.18; its growth rate is 6%; and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share. a. What is Evanec's cost of retained earnings, rs? b. What is Evanec's percentage flotation cost, F? c. What is Evanec's cost of new common stock, re?
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Using Microsoft Excel and Access 2016 for Accounting
Authors: Glenn Owen
5th edition
1337109048, 1337109045, 1337342149, 9781337342148 , 978-1337109048
