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Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $32.08. The
Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $32.08. The firm expects to pay a $3.32 dividend at the end of the year (2016). The dividends for the past 5 years are shown in the following table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 2015 2014 2013 2012 2011 Dividend per Share e $3.01 $2.86 $2.52 $2.25 $2.03 After underpricing and flotation costs, the firm expects to net $27.91 per share on a new issue. Year 2015 2014 2013 2012 2011 Dividend per Share $3.01 $2.86 $2.52 $2.25 $2.03 Please copy and paste data from text area below. Selected delimiter: Tab After underpricing and flotation costs, the firm expects to net $27.91 per share on a new issue. a. Determine the growth rate of dividends from 2011 to 2015. b. Determine the net proceeds, No, that the firm will actually receive c. Using the constant-growth valuation model, determine the cost of retained earnings, rs. d. Using the constant-growth valuation model, determine the cost of new common stock, in Year 2015 2014 2013 2012 2011 Dividend 3.01 2.86 2.52 2.25 2.03 Done
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