Cost of Common Equity with and without Flotation
The Evanec Company's next expected dividend, D1, is $3.13; its growth rate is 4%; and its common stock now sells for $34. New stock (external equity) can be sold to net $28.90 per share.
What is Evanec's cost of retained earnings, rs? Round your answer to two decimal places. Do not round your intermediate calculations.
rs = %
What is Evanec's percentage flotation cost, F? Round your answer to two decimal places.
F = %
What is Evanec's cost of new common stock, re? Round your answer to two decimal places. Do not round your intermediate calculations.
re = %