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?
1 answer