Calculate the next expected dividend

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Reference no: EM132041128

The Bouchard Company's EPS was $5.39 in 2016, up from $3.08 in 2011. The company pays out 50% of its earnings as dividends, and its common stock sells for $31.

Calculate the past growth rate in earnings.

The last dividend was D0 = 0.50($5.39) = $2.70. Calculate the next expected dividend, D1, assuming that the past growth rate continues.

What is Bouchard's cost of retained earnings, rs?

Reference no: EM132041128

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