Cost of common stock equity ross textiles wishes to measure

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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 (2013). The dividends for the past 5 years are shown in the following table. Year Dividend 2012 $3.10 2011 2.92 2010 2.60 2009 2.30 2008 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 2008 to 2012.

Reference no: EM13605485

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