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Cost of common stock equity Rose Textiles wishes to measures con of common stock equity. The stock cering for 512.08The most dedot 400 m increasing

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Cost of common stock equity Rose Textiles wishes to measures con of common stock equity. The stock cering for 512.08The most dedot 400 m increasing dividends regularly Five years ago, the dividend was just $200 Aerundering and rotation their expects to net 37 per than a new Determine average are widend growth rate over the past years in the growth rate what we would you expect the company spared year? Determine the rood that the im will alive e. Using the constant growth to determine the required to the company stock, which should contattaret eaming, d. Using the constant growth valuation model determine the cost of new connon sok a. The average annual dividend growth rate over the past years to Round to two decina aces) Using that growth rate, the divided you expect the company to pay next year sound to decimal places) b. The net proceeds the firm will actually receive are Round to two decimal place c. Using the constant-growth valuation model the cost of retired saming Round to ho decimal places) d. Using the constant growth valuation model, the cost of new common stock, Pond to two doom ple) ? Enter your answer in each of the answer box Z * x A-ONA | Normal * No Spac. Heading 1 Heading 2 1 - - Find - Replace Select Tale Font Paragraph Styles W 1 2 Editing 5 6. Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $42.68. The firm just recently paid a dividend of $4.06. The firm has been increasing dividends regularly. Five years ago, the dividend was just $2.95. After underpricing and flotation costs, the firm expects to net $37.99 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. Nn, that the firm will actually receive. c. Using the constant growth valuation model, determine the required return on the company's stock, I's, which should equal the cost of retained earnings, I'r. d. Using the constant-growth valuation model, determine the cost of new common stock, In. a. The average annual dividend growth rate over the past 5 years is %.(Round to two decimal places.) Using that growth rate, the dividend you expect the company to pay next year is s (Round to two decimal places.) b. The net proceeds, Nn, the firm will actually receive are ! (Round to two decimal places.) c. Using the constant-growth valuation model, the cost of retained earnings, I's, is %.(Round to two decimal places.) d Teina the constant.arowth valuation model the cnet of new common stock nie Focus DEB (United States ME 10095 Lan Christian w Review View Help Sh Design Layout References Mailings - A A Aa AoE21 * A . E- AalbCcDc AaBbCcDc AaBbc AaBbcc AaB Normal 1 No Spac... Heading 1 Heading 2 Find Replace Select Title Dictate nt Paragraph Styles 1 6 Editing Voice a. The average annual dividend growth rate over the past 5 years is! %(Round to two decimal places.) Using that growth rate, the dividend you expect the company to pay next year is s (Round to two decimal places.) b. The net proceeds, Nn, the firm will actually receive are si .(Round to two decimal places.) c. Using the constant-growth valuation model, the cost of retained earnings. I's, is %.(Round to two decimal places.) d. Using the constant-growth valuation model, the cost of new common stock, In, is ecin %. (Round to two decimal places.) S Focus E ited States 100% Cost of common stock equity Rose Textiles wishes to measures con of common stock equity. The stock cering for 512.08The most dedot 400 m increasing dividends regularly Five years ago, the dividend was just $200 Aerundering and rotation their expects to net 37 per than a new Determine average are widend growth rate over the past years in the growth rate what we would you expect the company spared year? Determine the rood that the im will alive e. Using the constant growth to determine the required to the company stock, which should contattaret eaming, d. Using the constant growth valuation model determine the cost of new connon sok a. The average annual dividend growth rate over the past years to Round to two decina aces) Using that growth rate, the divided you expect the company to pay next year sound to decimal places) b. The net proceeds the firm will actually receive are Round to two decimal place c. Using the constant-growth valuation model the cost of retired saming Round to ho decimal places) d. Using the constant growth valuation model, the cost of new common stock, Pond to two doom ple) ? Enter your answer in each of the answer box Z * x A-ONA | Normal * No Spac. Heading 1 Heading 2 1 - - Find - Replace Select Tale Font Paragraph Styles W 1 2 Editing 5 6. Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $42.68. The firm just recently paid a dividend of $4.06. The firm has been increasing dividends regularly. Five years ago, the dividend was just $2.95. After underpricing and flotation costs, the firm expects to net $37.99 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. Nn, that the firm will actually receive. c. Using the constant growth valuation model, determine the required return on the company's stock, I's, which should equal the cost of retained earnings, I'r. d. Using the constant-growth valuation model, determine the cost of new common stock, In. a. The average annual dividend growth rate over the past 5 years is %.(Round to two decimal places.) Using that growth rate, the dividend you expect the company to pay next year is s (Round to two decimal places.) b. The net proceeds, Nn, the firm will actually receive are ! (Round to two decimal places.) c. Using the constant-growth valuation model, the cost of retained earnings, I's, is %.(Round to two decimal places.) d Teina the constant.arowth valuation model the cnet of new common stock nie Focus DEB (United States ME 10095 Lan Christian w Review View Help Sh Design Layout References Mailings - A A Aa AoE21 * A . E- AalbCcDc AaBbCcDc AaBbc AaBbcc AaB Normal 1 No Spac... Heading 1 Heading 2 Find Replace Select Title Dictate nt Paragraph Styles 1 6 Editing Voice a. The average annual dividend growth rate over the past 5 years is! %(Round to two decimal places.) Using that growth rate, the dividend you expect the company to pay next year is s (Round to two decimal places.) b. The net proceeds, Nn, the firm will actually receive are si .(Round to two decimal places.) c. Using the constant-growth valuation model, the cost of retained earnings. I's, is %.(Round to two decimal places.) d. Using the constant-growth valuation model, the cost of new common stock, In, is ecin %. (Round to two decimal places.) S Focus E ited States 100%

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