Check My Work eBook Problem Walk-Through Cost of Equity Radon Homes' current EPS is $7.50. It was $3.81 5 years ago. The company pays out 50% of its earnings as dividends, and the stock sells for $40. a. Calculate the historical growth rate in earnings. (Hint: This is a 5-year growth period.) Do not round intermediate calculations. Round your answer to two decimal places. b. Calculate the next expected dividend per share, D. (Hint: Do - 0.50($7.50) - $3.75.) Assume that the past growth rate will continue. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. What is Radon's cost of equity, rs? Do not round Intermediate calculations. Round your answer to two decimal places