Calculate the next expected dividend per share

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Cost of Equity Radon Homes's current EPS is $6.16. It was $4.07 5 years ago. The company pays out 55% of its earnings as dividends, and the stock sells for $34. Calculate the historical growth rate in earnings. Round your answer to two decimal places. (Hint: This is a 5-year growth period.) % Calculate the next expected dividend per share, D1 Assume that the past growth rate will continue. Round your answer to the nearest cent. (Hint: D0 = 0.55($6.16) = $3.39). $ What is Radon's cost of equity, rs? Round your answer to two decimal places.

Reference no: EM131318789

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