Question
The Bouchard Company's EPS was $5.39 in 2016, up from $3.08 in 2011. The company pays out 50% of its earnings as dividends, and its
The Bouchard Company's EPS was $5.39 in 2016, up from $3.08 in 2011. The company pays out 50% of its earnings as dividends, and its common stock sells for $31.
Calculate the past growth rate in earnings.
The last dividend was D0 = 0.50($5.39) = $2.70. Calculate the next expected dividend, D1, assuming that the past growth rate continues.
What is Bouchard's cost of retained earnings, rs?
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
