Calculate the next expected dividend-d1

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The Bouchard Company's EPS was $6.96 in 2012, up from $3.34 in 2007. The company pays out 50% of its earnings as dividends, and its common stock sells for $31.

Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.)

The last dividend was D0 = 0.50($6.96) = $3.48. Calculate the next expected dividend, D1, assuming that the past growth rate continues.

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

Reference no: EM13335216

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