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 2015 2014 2013 2012 2011 Dividend $3.10 2.92 2.60 2.30 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, Nn, that the firm will actually receive. c. Using the constant-growth valuation model, determine the cost of retained earnings, rp. d. Using the constant-growth valuation model, determine the cost of new common stock, r'n