Questions Problem 11-11(Cost of Equity) Check My Work (3 re eBook Problem Walk-Through Cost of Equity Radon Homes' current EPS is $6.50. It was S4.11 5 years ago. The company pays out 40% of its earnings as dividends, and the stock sells for $35. a. Calculate the historical growth rate in earnings. (Hint: This is a 5-year growth period.) Do not round intermed ate calculations. Round your answer to two decimal places. S O b. Calculate the next expected dividend per share, Di. (Hint: Do-0.40($6.50) $2.60) Assume that the past growth rate will continue. Do not round intermediate calculations. Round your answer to the nearest cent. . What is Radon's cost of equity, r? Do not round Intermediate calculations. Round your answer to two decimal places