The Bouchard Company's EPS was $5.39 in 2016, up from $3.08 in 2011. The company pays out 40% of its earnings as dividends, and its common stock sells for $35.

Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.) Round your answer to two decimal places. %

The last dividend was D0 = 0.40($5.39) = $2.16. Calculate the next expected dividend, D1, assuming that the past growth rate continues. Do not round off intermediate calculations. Round your answer to the nearest cent. $

What is Bouchard's cost of retained earnings, rs? Round your answer to two decimal places. Do not round your intermediate calculations. %