Calculate the past growth rate in earnings

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Question - The Bouchard Company's EPS was $5.90 in 2021, up from $3.47 in 2016. The company pays out 40% of its earnings as dividends, and its common stock sells for $40.00.

Calculate the past growth rate in earnings.

The last dividend was D0 = 0.40($5.90) = $2.36. Calculate the next expected dividend, D1, assuming that the past growth rate continues. Do not round intermediate calculations.

What is Bouchard's cost of retained earnings, rs? Do not round intermediate calculations.

Reference no: EM133066068

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