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COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION The Evanec Company's next expected dividend, D1, is $2.87; 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 $2.87; its growth rate is 7%; and its common stock now sells for $34. New stock (external equity) can be sold to net $32.30 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 = % of new common stock, re? Round your answer to two decimal places. Do no round your intermediate calculations. c. What is Evanec's re = % Grade it Now Save & Continue Continue without saving
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