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Radon Homes' current EPS is $8.00. It was $3.63 5 years ago. The company pays out 50% of its earnings as dividends, and the stock
Radon Homes' current EPS is $8.00. It was $3.63 5 years ago. The company pays out 50% of its earnings as dividends, and the stock sells for $34.
- 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($8.00) = $4.00.) 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. %
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Essentials Of Statistics For The Behavioral Sciences
Authors: Frederick J Gravetter, Larry B. Wallnau
8th Edition
1133956572, 978-1133956570
