Reference no: EM132041799

Cost of common stock equity. Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $45.02. The firm expects to pay a $3.33 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 corner of the data table below in order to copy its contents into a spreadsheet.) Year Dividend per Share 2015 ?$3.03 2014 $2.73 2013 $2.51 2012 $2.22 2011 $2.07 After underpricing and flotation costs, the firm expects to net $40.97 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, r Subscript srs. d. Using the constant-growth valuation model, determine the cost of new common? stock, r Subscript nrn. a. The growth rate of dividends from 2011 to 2015 is nothing %. (Round to two decimal places.) b. The net? proceeds, Nn, the firm will actually receive are $nothing. (Round to two decimal places.) c. Using the constant-growth valuation model, the cost of retained earnings, r Subscript srs, is nothing %. (Round to two decimal places.) d. Using the constant-growth valuation model, the cost of new common stock, r Subscript nrn, is nothing%. (Round to two decimal places.)