Calculate the past growth rate in earnings

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The Bouchard Company's EPS was $6.14 in 2016, up from $3.87 in 2011. The company pays out 45% of its earnings as dividends, and its common stock sells for $33.

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 = 0.45($6.14) = $2.76. 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 not round your intermediate calculations.

Reference no: EM132048086

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