Cost of common stock equity Ron Textiles wishes to measure its cost of common stock quy Them's stocks cumently noting for 566 25. The tom just recently paid a dividend of 51 95 T. ago the dividend was just $2.96 After underpricing and flotation costs, the firm expects to net 558.83 per share on a new a. Determine average annual dividend growth rate over the past 5 years Usng that growth rate, what dividend would you expect the company to pay next you? b. Determine the nel proceed that the firm will actually receive c. Using the constant growi valition model determine the requred return on the company work which should equal the cost of retained aninger d. Using the constant growth valuation model determine the cont new common stock ..The average annual dividend growth rato cover the past years I Round to two com places of common stock equity The firm's stock is currently selling for $66.35. The firm just recently paid a dividend of 53.95. The firm has been increasing dividends regularly Five yean o on a new issue ning that growth rate, what dividend would you expect the company to pay next year? n on the company's stock, which should equal the cost of retained earnings ommon stock, in CETTE (Round to two decimal places Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The fire's stock is currently seling for 566.85 The Tim ustre ago, the dividend was just $2.96. Aftet underpricing and flotation costs, the firm expects to net $58.83 per share on a new issue a. Determine average annual dividend growth rate over the past 5 years. Using that growth rate, what dividend would you expect the company to pay next year? b. Determine the net proceeds, N, that the firm will actually receive c. Using the constant growth valuation model determine the required return on the company's stock, tg, which should equal the cost of retained earnings, d. Using the constant-growth valuation model determine the cost of now.common stock. In a. The average annual dividend growth rate over the past 5 years is 0% (Round to two decimal places tiles wishes to measure its cost of common stock equity The firm's stock is currently seling for 56686. The fimm just recently paid a dividend of $395. The firm han been in 5 irm expects to net $58.83 per share on a new issue wth rate over the past 5 years Using that growth rate, what dividend would you expect the company to pay next year? e firm will actually receive odel, determine the required return on the company's stock. (which should equal the cost of retained earnings, odel, determine the cost of new common stock, in ste over the past 5 years in % (Round to two decimal places Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for 566 85 The firm just recen ago, the dividend was just $2.96 After underpricing and flotation costs, the firm expects to net $58.83 per share on a new issue. . Determine average annual dividend growth rate over the past 5 years. Using that growth rate, what dividend would you expect the company to pay next year? b Determine the net proceeds, N, that the firm will actually receive c. Using the constant-growth valuation model, determine the required return on the company's stock, rs, which should equal the cost of retained earings, d. Using the constant growth valuation model determine the cost of new common stock a. The average annual dividend growth rate over the past 5 years is % (Round to two decimal places.)
