Question 4 The Avanect Company's next expected dividend, D 1 , is $3 79 its growth rate is 5 and its common stock now sells for $39 00 New stock (external equity) can be sold to net $37 05 per share What is Avanect's cost of retained earnings, r s Don't round intermediate calculations Round your answer to two decimal places r s What is Evanec's percentage flotation cost, F Round your answer to two decimal places F What is Evanec's cost of new common stock, r e Do not round intermediate calculations Round your answer to two decimal places r e

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Question: Question # 4 The Avanect Company's next expected dividend, D 1 , is $3.79; its growth rate is 5%; and its common stock now sells

Question # 4

The Avanect Company's next expected dividend, D₁, is $3.79; its growth rate is 5%; and its common stock now sells for $39.00. New stock (external equity) can be sold to net $37.05 per share.

What is Avanect's cost of retained earnings, r_s? Don't round intermediate calculations. Round your answer to two decimal places.

r_s = %
What is Evanec's percentage flotation cost, F? Round your answer to two decimal places.

F = %
What is Evanec's cost of new common stock, r_e? Do not round intermediate calculations. Round your answer to two decimal places.

r_e = %

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