Cost of Equity

Radon Homes' current EPS is $$6\mathrm{.}90.$ It was $$4\mathrm{.}385$ years ago. The company pays out $60\%$ of its earnings as dividends, and the stock sells for $$33.$

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.

$\%$ $

c$.$ What is Radon's cost of equity, $r_s?$ Do not round intermediate calculations. Round your answer to two decimal places.

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