What is evanec percentage flotation cost

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COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION

The Evanec Company's next expected dividend, D1, is $3.96; its growth rate is 4%; and its common stock now sells for $37. New stock (external equity) can be sold to net $31.45 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: EM132039970

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