Question: Problem 10.07 (Cost of Common Equity with and without Flotation) The Evanec Company's next expected dividend, Dr, is $3.80; its growth rate is 5%; and

Problem 10.07 (Cost of Common Equity with and without Flotation) The Evanec Company's next expected dividend, Dr, is $3.80; its growth rate is 5%; and its common stock now sells for $36.00. New stock (external equity) can be sold to net 434.20 per share. a. What is Evanec's cost of retained eamings, rs ? Do not round intermediate calculations. Round your answer to two decimal places. 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

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