The Bouchard Company's EPS was $5.90 in 2021, up from $3.47 in 2016. The company pays out 50% of its earnings as dividends, and its common stock sells for $37.00. Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.) Round your answer to two decimal places.   % The last dividend was D0 = 0.50($5.90) = $2.95. Calculate the next expected dividend, D1, assuming that the past growth rate continues. Do not round intermediate calculations. Round your answer to the nearest cent. $   What is Bouchard's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places.   %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The Bouchard Company's EPS was $5.90 in 2021, up from $3.47 in 2016. The company pays out 50% of its earnings as dividends, and its common stock sells for $37.00.

  1. Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.) Round your answer to two decimal places.

      %

  2. The last dividend was D0 = 0.50($5.90) = $2.95. Calculate the next expected dividend, D1, assuming that the past growth rate continues. Do not round intermediate calculations. Round your answer to the nearest cent.

    $  

  3. What is Bouchard's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places.

      %

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