Radon Homes' current EPS is $6.00. It was $4.77 5 years ago. The company pays out 50% of its earnings as dividends, and the stock sells for $38. Calculate the historical growth rate in earnings. (Hint: This is a 5-year growth period.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the next expected dividend per share, D1. (Hint: D0 = 0.50($6.00) = $3.00.) 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, rs? Do not round intermediate calculations. Round your answer to two decimal places.

___%