Solved: Cost of retained earning-percentage flotation cost, Finance Basics

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Cost of retained earning-percentage flotation cost

The Evanec Company's next expected dividend, D1, is $3.18; its growth rate is 6%, and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share.

a) What is Evanec's cost of retained earning, rs?

b) What is Evanec's percentage flotation cost, F?

c) What is Evanec's cost of new common stock, re?

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Finance Basics: Cost of retained earning-percentage flotation cost

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Cost of retained earning-percentage flotation cost

Reference No:- TGS0559189

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Cost of retained earning-percentage flotation cost

Reference No:- TGS0559189

Recent Questions Asked Finance Basics

Q : What is the effective annual interest rate ear on loan

Q : Explain amount of impairment loss should c and r recognize

Q : Prepare shlee corporation''s january 1 journal entry

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