Problem $10\mathrm{.}07($Cost of Common Equity with and without Flotation$)$

Question $5$ of $20$

Check My Work $(3$ remaining$)$

The Evanec Company's next expected dividend, $D_1,$ is $$3\mathrm{.}22$; its growth rate is $4\%$; and its common stock now sells for $$39\mathrm{.}00.$ New stock $($external equity$)$ can be sold to net $$33\mathrm{.}15$ per share.

a$.$ What is Evanec's cost of retained earnings, $r_s?$ Do not round intermediate calculations. Round your answer to two decimal places.

$r_s=,\%$

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, $r_e?$ Do not round intermediate calculations. Round your answer to two decimal places.

$r_e=$

Check My Work $(3$ remaining$)$

$0=$ Icon Key