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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 $57.72. 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 $57.72. 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 Dividend per Share 2 2015 2014 2013 2012 2011 $3.02 $2.85 $2.59 $2.15 $2.06 After underpricing and flotation costs, the firm expects to net $52.53 per share on a new issue a. The growth rate of dividends from 2011 to 2015 is %. (Round to two decimal places.) b. The net proceeds, Nn, the firm will actually receive are $. (Round to two decimal places.) c Using the constant growth valuation model, the cost o retained earnings GIs %. Round to two decir al places. d. Using he constant growth valuation model the cost o new common stock, r is %. Round to two decimal places
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