Calculate the past growth rate in earnings

Assignment Help Financial Management

Reference no: EM131502819

The Bouchard Company's EPS was $6.14 in 2016, up from $3.87 in 2011. The company pays out 50% of its earnings as dividends, and its common stock sells for $32.

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($6.14) = $3.07. Calculate the next expected dividend, D1, assuming that the past growth rate continues. Do not round off intermediate calculations. Round your answer to the nearest cent.

What is Bouchard's cost of retained earnings, rs? Round your answer to two decimal places. Do

Reference no: EM131502819

Questions Cloud

Profit and loss statement for this free standing center : Develop a Profit and Loss Statement for this Free Standing Center. Distribution of Payers: 60% Medicare, 40% Private Payers

Life cycle of project was just a straight diagonal line : What might be budget problems if life cycle of project was just a straight diagonal line from 0 at project start to 100 percent at project completion.

Salvage value affect the net cash flow calculations : In which year would the salvage value affect the net cash flow calculations?

What is the cost of the preferred stock-including flotation : Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. What is the cost of the preferred stock, including flotation?

Calculate the past growth rate in earnings : Calculate the past growth rate in earnings. What is Bouchard's cost of retained earnings, rs?

What is the amount of the monthly mortgage payment? : How much do you need for the down payment? What is the amount of the monthly mortgage payment? Do you agree with the officer's comment? Why or why not?

Which projects should empire accept : Empire Electric Company (EEC) uses only debt and common equity. What is its cost of common equity? Which projects should Empire accept?

Product life cycle of your athletic shoe brand : How will you determine when it will be best to proceed with product development while considering implications on product life cycle of your athletic shoe brand

Purpose of pension plans : there is a lot of public attention given to how companies are administering pension plans.

User Account

All Pages