Midyear on July 31st, the Andrews Corporation's balance sheet reported: Total Liabilities of $82.529 million Cash of $10.050 million Total Assets of $224.741 million Retained Earnings of $83.363 million. What was the Andrews Corporation's common stock?
a. $68.899 million
b. $225.575 million
c. $235.625 million
d. $58.849 millionJarett & Sons's common stock currently trades at $29.00 a share. It is expected to pay an annual dividend of $1.25 a share at the end of the year (D1 = $1.25), and the constant growth rate is 4% a year.
What is the company's cost of common equity if all of its equity comes from retained earnings? Round your answer to two decimal places. Do not round your intermediate calculations.
%
If the company issued new stock, it would incur a 8% flotation cost. What would be the cost of equity from new stock? Round your answer to two decimal places. Do not round your intermediate calculations.