The Evanec Company's next expected dividend, D1, is $2.75; its growth rate is 6%; and its common stock now sells for $36. New stock (external equity) can be sold to net $28.80 per share.
A. What is Evanec's cost of retained earnings, rs? Round your answer to two decimal places.
B. What is Evanec's percentage flotation cost, F?
C. What is Evanec's cost of new common stock, re?