Required:
The common stock for EV Company currently sells for $20 per share. The firm just paid a dividend of $1.50, and the dividend 3 years a go was $1.30. DIvidends per share are anticipated to grow at the same rate in the future as they have over the past 3 years. Floatation costs for new shares will be 6% of the selling price.
Required:
Question: Calculate the cost of external equity capital.
Note: Please show guided help with steps and answer.