Ross Textile wishes to measure its cost of common stock equity. The firms 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 floatation 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, rr,.

D. using the constant-growth valuation model, determine the cost of new common stock, r n.