Ross Textiles wishes to measure its cost of common stock equity. The​ firm's stock is currently selling for ​$70.67. The firm just recently paid a dividend of ​$4.00. The firm has been increasing dividends regularly. Five years​ ago, the dividend was just ​$2.99.   After underpricing and flotation​ costs, the firm expects to net ​$69.00 per share on a new issue.   a.  Determine average annual dividend growth rate over the past 5 years. Using that growth​ rate, what dividend would you expect the company to pay next​ year? b. Determine the net​ proceeds, Nn​, that the firm will actually receive. c.  Using the​ constant-growth valuation​ model, determine the required return on the​ company's stock, rs​, which should equal the cost of retained​ earnings, rr. d.  Using the​ constant-growth valuation​ model, determine the cost of new common​ stock, r

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Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.