A firm has common stock with a market price of $100 per share and an expected dividend of $5.61 per share at the end of the coming year. A new issue of stock is expected to be sold for $98, with $2 per share representing the underpricing necessary in the competitive capital outstanding stock over the past five years are as follows: Year1-5 Dividend: $4.00, $4.28, $4.58, $4.90, $5.24