The Evanec Company's next expected dividend, D1, is $3.49; its growth rate is 7%; and its common stock now sells for $38. New stock (external equity) can be sold to net $36.10 per share.
1. What is Evanec's cost of retained earnings, rs? Round your answer to two decimal places.
rs = %
2. What is Evanec's percentage flotation cost, F? Round your answer to two decimal places. F = %
3. What is Evanec's cost of new common stock, re? Round your answer to two decimal places.