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The Bouchard Company's EPS was $$5\mathrm{.}90$ in $2021,$ up from $$3\mathrm{.}47$ in $2016.$ The company pays out $60\%$ of its earnings as dividends, and its common stock sells for $$37\mathrm{.}00.$

a$.$ Calculate the past growth rate in earnings. $($Hint: This is a $5-$year growth period.$)$ Round your answer to two decimal places.

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b$.$ The last dividend was $D_0=0\mathrm{.}60($$$5\mathrm{.}90)=$$$3\mathrm{.}54.$ Calculate the next expected dividend, $D_1,$ assuming that the past growth rate continues. Do not round intermediate calculations. Round your answer to the nearest cent.

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

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