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Q5 The Evanec Company's next expected dividend, D1, is $3.55; its growth rate is 4%; and its common stock now selis for $39.00. New stock
Q5
The Evanec Company's next expected dividend, D1, is $3.55; its growth rate is 4%; and its common stock now selis for $39.00. New stock (external equity) can be sold to net $33.15 per share. a. What is Evanec's cost of retalned earnings, r s? Do not round intermediate calculations. Round your answer to two decimal places. r5= 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, re? Do not round intermediate calculations, Round your answer to two decimal places. re= Step by Step Solution
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