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Category > Business & Finance Posted 14 May 2017 My Price 5.00

COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION

COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION

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 earnings, rs?

b. What is Evanec’s percentage flotation cost, F?

c. What is Evanec’s cost of new common stock, re?

 

 

 

 

Answers

Alpha Geek
(8)
Status NEW Posted 14 May 2017 06:05 PM My Price 5.00

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file 1494786380-Answer.docx preview (115 words )
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