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The Evanec Company's next expected dividend, D1, is $3.90; its growth rate is 4%; and its common stock now sells for $32.00. New stock (external
The Evanec Company's next expected dividend, D1, is $3.90; its growth rate is 4%; and its common stock now sells for $32.00. New stock (external equity) can be sold to net $28.80 per share. a. What is Evanec's cost of retained earnings, rs? 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, re? Do not round intermediate calculations. Round your answer to two decimal places. re= %
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