Here is the dividend history per share of my company (how my company's dividend has grown over the last 5 years):

2014$2.12

2015$2.30

2016$2.60

2017$2.92

2018$3.10

I want you to calculate the cost of my common stock equity using the dividend growth valuation model. My common stock is currently selling for $57.50 per share and I expect to pay a dividend in 2019 in the amount of $3.40. I will net $52 per share after underpricing & flotation costs

1.Determine the growth rate (g) of my dividends (hint: Use your 305 time value knowledge)

2.Use the constant growth valuation model & determine the cost of retained earnings

3.Use the constant growth valuation model & determine the cost of new common stock