Course of study: Principles of Managerial Finance, 14th edition. Chapter 9 Problem P9-10. Cost of common stock equity. Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $57.50. The firm expects to pay a $3.40 dividend at the end of the year (2016). The dividends for the past 5 years are shown in the following table.

Year	Dividend
2015	$3.10
2014	2.92
2013	2.60
2012	2.30
2011	2.12

After underpricing and flotation costs, the firm expects to net $52 per share on a new issue. a.) Determine the growth rate of dividends from 2011 to 2015. b.) Determine the net proceeds, , that the firm will actually receive. c.) Using the constant-growth valuation model, determine the cost of retained earnings d.) Using the constant-growth valuation model, determine the cost of new common stock Rn.