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Question: The Evanec Company's next expected dividend, D1, is $3.94; its growth rate is 6%; and its common stock now sells for $40. New stock (external equity) can be sold to net $34.00 per share.

a) What is Evanec's cost of retained earnings, rs? Round your answer to two decimal places. Do not round your intermediate calculations. 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. Do not round your intermediate calculations. re = %

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Basic Finance, Finance

Category:- Basic Finance
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