Radon Homes' current EPS is $7.80. It was $4.31 5 years ago. The company pays out 40% of its earnings as dividends, and the stock sells for $36. 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 = 0.40($7.80) = $3.12.) 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. %