Cost of common stock equity Ross Textileswishes to measure its cost of common stock equity. The? firm'sstock is currently selling for ?$64.19. The firm just recently paida dividend of ?$4.04. The firm has been increasing dividendsregularly. Five years? ago, the dividend was just ?$2.99.

After underpricing and flotation? costs, the firm expects to net$58.41 per share on a new issue.

A. Determine average annual dividend growth rate over the past 5years. Using that growth? rate, what dividend would you expect thecompany to pay next? year?

B. Determine the net? proceeds, Nn?, that the firm will actuallyreceive.

C. Using the? constant-growth valuation? model, determine therequired return on the? company's stock, rs?, which shouldequal the cost of retained? earnings, rr.

D. Using the? constant-growth valuation? model, determine thecost of new common? stock, rn.

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A. The average annual dividend growth rate overthe past 5 years is ___ % ?(Round to two decimal? places.)

Using that growth? rate, the dividend you expect the company topay next year is ?$__. ?(Round to two decimal? places.)

B. The net? proceeds, Nn?, the firm willactually receive are __ (Round to two decimal? places.)

C. Using the? constant-growth valuation? model,the cost of retained? earnings, rs?, is __%. ?(Round totwo decimal? places.)

D. Using the? constant-growth valuation? model,the cost of new common? stock, rn?, is __%.?(Round to twodecimal? places)