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Question Workspace Check My Work eBook The Bouchard Company's EPS was $6.10 in 2018, up from $3.95 in 2013. The company pays out 40% of

Question Workspace

Check My Work

  • eBook

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. %
  3. 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.
  4. $
  5. What is Bouchard's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places.
  6. %

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