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How do I solve this and what are the correct answers? Cost of Equity Radon Homes' eurrent EPS is $7.50, 1t was $4.14$ years ago.
How do I solve this and what are the correct answers? Cost of Equity Radon Homes' eurrent EPS is $7.50, 1t was $4.14$ years ago. The company pays out 60% of its earnings as dividends, and the stock sells for $37. a. Calculate the histarical grawth rate in earnings, (Hint: This is a 5 -year growth period.) Do not round intermediate calculations. Round vour answer to two decimal places. \% b. Calculate the next expected dividend per share, D1. ( Hint: D0=0.60($7.50)=54.50 ) Assume that the post growth rote will contirue. Do not round intermediate calculations. Round your answer to the nearest cent. 3 c. What is Rodon's cost of equity, fs? Do not round intermediate calculations. Round your answer to two decimal places: \%
How do I solve this and what are the correct answers?
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