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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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
