Cost of common stock equity Ross Tantiles wishes to measure its cost of common stock equity. The firm's stock is currently seling for $41.91. The firm just recently paid a dividend of 54.12. The firm has been increasing dividends regularly. Five years ago, the dividend was just $3.06. After underpricing and flotation costs, the firm expects to net $39.40 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 nel proceeds, that the firm will actually receive c. Using the constant-growth valuation model, determine the required return on the company's stockig, which should equal the cost of retained earnings, d. Using the constant-growth valuation model, determine the cost of new common stock, lo a. The average annual dividend growth rate over the past 5 years is % (Round to two decimal places.)