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The Evanec Company's next expected dividend, D1, i...

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The Evanec Company's next expected dividend, D1, is $3.79; its growth rate is 5%; and its common stock now sells for $36. New stock (external equity) can be sold to net $32.40 per share. a. What is Evanec's cost of retained earnings, rs? 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? Round your answer to two decimal places.

 

Paper#4272 | Written in 18-Jul-2015

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