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 = %