Homewroklib Q&A #1264 - Cost of Common Equity with and without Flotation The Evane

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. New stock (external equity) can be sold tonet $32.40 a share.

What is Evanec's percentage flotation cost, F?

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