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Cost of Common Equity with and without Flotation The Evanec Company's next expected dividend, D1, is $3.74; its growth rate is 7%; and its common
Cost of Common Equity with and without Flotation
The Evanec Company's next expected dividend, D1, is $3.74; its growth rate is 7%; and its common stock now sells for $37. New stock (external equity) can be sold to net $35.15 per share.
What is Evanec's cost of retained earnings, rs? Round your answer to two decimal places. rs = %
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, re? Round your answer to two decimal places. re =
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