Cost of Equity Radon Homes' current EPS is $7.57. It was $3.79 5 years ago. The company pays out 55% of its earnings as dividends, and the stock sells for $38. Calculate the historical growth rate in earnings. (Hint: This is a 5-year growth period.) Round your answer to two decimal places. % Calculate the next expected dividend per share, D1 (Hint: D0 = 0.55($7.57) = $4.16). Assume that the past growth rate will continue. Round your answer to the nearest cent. $ What is Radon's cost of equity, rs? Round your answer to two decimal places. %