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Radon Homes' current EPS is $7.30. It was $4.28 5 years ago. The company pays out 50% of its earnings as dividends, and the stock

Radon Homes' current EPS is $7.30. It was $4.28 5 years ago. The company pays out 50% of its earnings as dividends, and the stock sells for $34. a) 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. ____% b) Calculate the next expected dividend per share, D1. (Hint: D0 = 0.50($7.30) = $3.65.) Assume that the past growth rate will continue. Do not round intermediate calculations. Round your answer to the nearest cent _____ %. c)$ What is Radon's cost of equity, rs? Do not round intermediate calculations. Round your answer to two decimal places. _____%

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