What is evanec cost of retained earnings-rs

Assignment Help Financial Management
Reference no: EM132036815

The Evanec Company's next expected dividend, D1, is $3.91; its growth rate is 4%; and its common stock now sells for $38. New stock (external equity) can be sold to net $30.40 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 =  %

Reference no: EM132036815

Questions Cloud

The effective rate if the compensating balance is doubled : What is the effective rate if the compensating balance is doubled to 20%?
Calculate the firm days sales outstanding : Calculate the firm's Days Sales Outstanding, or average collection period, given this information.
What is the company expected growth rate : What is the company's expected growth rate? what portion of its net income is the firm expected to pay out as dividends?
What is the cost of the preferred stock : Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. What is the cost of the preferred stock, including flotation?
What is evanec cost of retained earnings-rs : What is Evanec's percentage flotation cost, F? What is Evanec's cost of retained earnings, rs?
What is cost of common equity and wacc : The last dividend was D0 = $3.75, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC?
What would be cost of new equity : New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of new equity?
What would be cost of equity from new stock : If the company issued new stock, it would incur a 12% flotation cost. What would be the cost of equity from new stock?
What is pearson cost of common equity : Pearson's CFO estimates that the company's WACC is 13.30%. What is Pearson's cost of common equity?

Reviews

Write a Review

Financial Management Questions & Answers

  Credit default swap market grew

One reason that the credit default swap market grew so rapidly from 2000 to 2007 is that:

  What was the dividend yield and percentage total return

Suppose a stock had an initial price of $87 per share, What was the dividend yield? What was the capital gains yield?

  What safe payments can each of the partners take

What, if any, safe payments can each of the partner's take?- what safe payments can each of the partner's take?

  Firm value-what is the current value of the company

hat is the current value of the company? What will the value of the firm be if the company takes on debt equal to 60 percent of its levered value?

  Compared to capitalized leases in the first year of a lease

Compare the effects of operating leases as compared to capitalized leases in the first year of a lease on the following items listed.

  The suppliers to seattle health system offers terms

Suppose one of the suppliers to Seattle Health System offers terms of 3/20, net 60. When does the system have to pay its bills from this supplier?

  What is the profit or loss associated with copper

Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded 250 pounds of gold and 63,700 pounds of copper. The joint cost related to the operation was $500,000. Gold sells for $325 per ounce and copper sells for $..

  What would terminal cap rate be appropriate

What would terminal cap rate be appropriate? What is the relationship between today's cap rate and the going out cap rate?

  Generate risk free arbitrage

Construct a portfolio that will generate a risk free arbitrage pro t if this is possible.

  It is indifferent to the two forms of payment

If the interest rate on the loan is 8%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment?

  What is the market expectations of the price that the bond

The Treasury plans to issue a 2-year maturity, 9% coupon bond that'll pay coupons once per year. The face value of the bond is 100. The yield-to-maturity on 1-year zero-coupon bonds is currently 7%. The yield-to-maturity on 2-year zeros is 8%. Assumi..

  Experiencing rapid growth

Navel County Choppers Inc. is experiencing rapid growth. The company expects dividends to grow at 20 percent per year for the next 10 years before leveling off at 5 percent into perpetuity. The required return on the company’s stock is 11 percent. If..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd