Cost of retained earnings-percentage flotation cost


he Evanec Company's next expected dividend, D1, is $3.18; its growth rate is 6% and the stock now sells for $36. New stock can be sold to net the firm $32.40 per share.

a) What is Evanec's cost of retained earnings, Ks?

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

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

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Finance Basics: Cost of retained earnings-percentage flotation cost
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