Question
The Evanec Company's next expected dividend, D1, is $3.68; its growth rate is 6%; and its common stock now sells for $36. New stock (external
The Evanec Company's next expected dividend, D1, is $3.68; its growth rate is 6%; and its common stock now sells for $36. New stock (external equity) can be sold to net $34.20 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 =
C. What is Evanec's cost of new common stock, re? Round your answer to two decimal places. Do not round your intermediate calculations. re =
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