What is cost of new common stock-cost of retained earnings

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Cost of Common Equity with and without Flotation The Evanec Company's next expected dividend, D1, is $3.77; its growth rate is 4%; and its common stock now sells for $38. 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. 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. re = %

Reference no: EM131179741

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