he Evanec Company's next expected dividend, D1, is $3.18; its growth rate is 6% and the stock now sells for $36. New stock can be sold to net the firm $32.40 per share.
a) What is Evanec's cost of retained earnings, Ks?
b) What is Evanec's percentage flotation cost, F?
c) What is Evanec's cost of new common stock, Ke?