Cost of common stock equity$$ Ross Textiles wishes to measure its cost of common stock equity. The$$ firm's stock is currently selling for $$$$45\mathrm{.}34.$ The firm just recently paid a dividend of $$$$4\mathrm{.}13.$ The firm has been increasing dividends regularly. Five years$$ ago, the dividend was just $$$$2\mathrm{.}99.$

After underpricing and flotation$$ costs, the firm expects to net $$$$39\mathrm{.}90$ 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 Subscript n$,$ that the firm will actually receive.

c$.$Using the$$ constant$-$growth valuation$$ model, determine the required return on the$$ company's stock, r Subscript s$,$ which should equal the cost of retained$$ earnings, r Subscript r$.$

d$.$Using the$$ constant$-$growth valuation$$ model, determine the cost of new common$$ stock, r Subscript n$.$