Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer the below questions current answers provides by Chegg expert are wrong. thanks eBook The Bouchard Company's EPS was $5.90 in 2019, up from

please answer the below questions current answers provides by Chegg expert are wrong. thanks image text in transcribed
eBook The Bouchard Company's EPS was $5.90 in 2019, up from $3.47 in 2014. The company pays out 60% of its earnings as dividends, and its common stock sells for $34.00. a. Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.) Round your answer to two decimal places. 11.67 % b. The last dividend was Do = 0.60($5.90) = $3.54. Calculate the next expected dividend, D1, assuming that the past growth rate continues. Do not round intermediate calculations. Round your answer to the nearest cent. $ 3.9531 c. What is Bouchard's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. 23.30 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions Management

Authors: Anthony Saunders

1st Edition

0256110565, 9780256110562

More Books

Students also viewed these Finance questions

Question

9. Describe the characteristics of power.

Answered: 1 week ago