Problem:
The Evanec Company's next expected dividend, D1, is $3.60; its growth rate is 5%; and its common stock now sells for $31. New stock (external equity) can be sold to net $27.90 per share.
Required:
Question 1: What is Evanec's cost of retained earnings, rs?
Question 2: What is Evanec's percentage flotation cost, F?
Question 3: What is Evanec's cost of new common stock, re?
Note: Please provide through step by step calculations.