Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $46.75. The firm just recently paid a dividend of $4.08. The firm has been increasing dividends regularly. Five years ago, the dividend was just $3.03. After underpricing and flotation costs, the firm expects to net $40.67 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? 5 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, rs, which should equal the cost of retained earnings, rr. d. Using the constant-growth valuation model, determine the cost of new common stock, rn: a. The average annual dividend growth rate over the past 5 years is %. (Round to two decimal places.)