The Evanec Company’s next expected dividend, D_1, 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.

Question

The Evanec Company’s next expected dividend, D_1, 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.
	What is Evanec’s cost of retained earnings, r_s?

What is Evanec’s percentage flotation cost, F?

What is Evanec’s cost of new common stock, r_e?

Anonymous · Answer

15 de feb. de 2012 - Following are selected balance sheet accounts for Third State Bank: vault cash= $2 million; U.S. government securities = $5 million; demand deposits = $13 million; ... accounts= $20 million; cash items in process of collection =$4 million; ... Vault Cash $2 million US Gov'tSecurites $5 million Cash under ...