= Homework: Chapter 9 Homework Question 7, P9-10 (simil... HW Score: 54.55%, 6 of 11 points Part 1 of 4 Points: 0.25 of 1 Save Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $30.54. The firm expects to pay a $3.28 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 comer of the data table below in order to copy its contents into a spreadsheet.) Year Dividend per Share 2015 $2.99 2014 $2.72 2013 $2.47 2012 $2.16 2011 $2.06 After underpricing and flotation costs, the firm expects to net $26.57 per share on a new issue. a. Determine the growth rate of dividends from 2011 to 2015 b. Determine the net proceeds, N, that the firm will actually receive. c. Using the constant-growth valuation model, determine the cost of retained eamings, /, d. Using the constant-growth valuation model, determine the cost of new common stock, 'n a. The growth rate of dividends from 2011 to 2015 is %. (Round to two decimal places.)