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The Evanec Company's next expected dividend, D1, is $3.18; its growth rate is 6%, and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share.

a) What is Evanec's cost of retained earning, rs ?

b) What is Evanec's percentage flotation cost, F ?

c) What is Evanec's cost of new common stock, re ?

 

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