The Evanec Company's next expected dividend, D₁, is $3.88; its growth rate is 5%; and its common stock now sells for $40.00. New stock (external equity) can be sold to net $36.00 per share.

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

   r_s = _____%

2. What is Evanec's percentage flotation cost, F? Round your answer to two decimal places.

   F = ____%

3. 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 = ____ %