The Evanec Company's next expected dividend, D1, is $3.37; its growth rate is 7%; and its common stock now sells for $39.00. New stock (external equity) can be sold to net $37.05 per share. a. What is Evanec's cost of retained earnings, rg? 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, r,? Do not round intermediate calculations. Round your answer to two decimal places. r. -
The Evanec Company's next expected dividend, D1, is $3.37; its growth rate is 7%; and its common stock now sells for $39.00. New stock (external equity) can be sold to net $37.05 per share. a. What is Evanec's cost of retained earnings, rg? 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, r,? Do not round intermediate calculations. Round your answer to two decimal places. r. -
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 6P
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