The Evanec Company's next expected dividend, D1, is $3.22; its growth rate is 4%; and its common stock now sells for $35.00. New stock (external equity) can
be sold to net $29.75 per share.
a. What is Evanec's cost of retained earnings, is? Do not round intermediate calculations. Round your answer to two decimal places.
s =
%
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? Do not round intermediate calculations. Round your answer to two decimal places.
re