Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firms stock is currently selling for $49.22. The firm expects to pay a $3.30 dividend at the end of the year (2016). The dividends for the past 5 years are showing in the following table

Year Dividend per Share

2015 $3.01

2014 $2.79

2013 $2.45

2012 $2.22

2011 $2.09

After underpricing and flotation costs, the firm expects to net $43.31 per share on a new issue

a. Determine the growth rate of dividends from 2011 to 2015

b. Determine the net proceeds, Nn, that firm will actually recieve

c. using the constant growth valuation model, determine the cost of retained earnings,rs

f. Using the constant growth valuation model, determine the cost of new common stock, rn