Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $$40\mathrm{.}26.$ The firm just recently paid a dividend of $$4\mathrm{.}12.$ The firm has been increasing dividends regularly. Five years ago, the dividend was just $$3\mathrm{.}02.$

After underpricing and flotation costs, the firm expects to net $$35\mathrm{.}83$ 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, $N_n,$ that the firm will actually receive.

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

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

a$.$ The average annual dividend growth rate over the past $5$ years is $\%.($Round to two decimal places.$)$