Question: answer part a please! The Evanec Company's next expected dividend, D1, is $2.93; its growth rate is 5%; and its common stock now sells for

answer part a please! The Evanec Company's next expected dividend, D1, isanswer part a please!

The Evanec Company's next expected dividend, D1, is $2.93; its growth rate is 5%; and its common stock now sells for $39.00. New stock (external equity) can be sold to net $31.20 per share. a. What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. 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? Do not round intermediate calculations. Round your answer to two decimal places. re= %

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!