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The Bouchard Company's EPS was $6.10 in 2018, up from $3.95 in 2013. The company pays out 40% of its earnings as dividends, and its common stock sells for $37.00.

1. Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.) Round your answer to two decimal places.
2. %
4. The last dividend was D0= 0.40($6.10) = $2.44. 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.
5. $
7. What is Bouchard's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places.
8. %