Question
The Evanec Company's next expected dividend, D 1 , is $3.39; its growth rate is 6%; and its common stock now sells for $33.00. New
The Evanec Company's next expected dividend, D1, is $3.39; its growth rate is 6%; and its common stock now sells for $33.00. New stock (external equity) can be sold to net $26.40 per share.
What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places.
What is Evanec's percentage flotation cost, F? Round your answer to two decimal places.
What is Evanec's cost of new common stock, re? Do not round intermediate calculations. Round your answer to two decimal places.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
