Problem 10.07 (Cost of Common Equity with and without Flotation) Question 5 of 20 Check My Work (3 remaining) eBook The Evanec Company's next expected dividend, D1, is $3.03; its growth rate is 4%; and its common stock now sells for $32.00. New stock (external equity) can be sold to net $27.20 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 = % Problem 10.09 (WACC) Question 7 of 20 Check My Work (3 remaining) eBook The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 15%, its before-tax cost of debt is 10%, and its marginal tax rate is 25%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,197. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets Liabilities And Equity Cash $ 120 Accounts payable and accruals $ 10 Accounts receivable 240 Short-term debt 47 Inventories 360 Long-term debt 1,150 Plant and equipment, net 2,160 Common equity 1,673 Total assets $2,880 Total liabilities and equity $2,880 Calculate Paulson's WACC using market value weights. Do not round intermediate calculations. Round your answer to two decimal places. %