Calculate annual growth rate of eps over the past 5 years

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Reference no: EM133335831

Question: The company's current EPS (Earnings per share) is $6.50. It was $3.42 five years ago. The company pays out 40 % of its earnings as dividends and its stock sells for $36.

Calculate the annual growth rate of EPS over the past 5 years.
Calculate next year's dividend per share, D1. (Hint: D0= 40 % of current EPS)
What is the company's cost of equity?
The company has a 6 % coupon rate, semi-annual payment, and a $1000 par value that matures in 30 years and sells at a price of $615.16. The company's total tax rate is 25 %. What is the company's cost of debt?
If the company uses a capital structure of 60 % equity and 40 % debt, what is the the company's cost of capital?

Reference no: EM133335831

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