Question
The Bouchard Company's EPS was $5.40 in 2019, up from $3.26 in 2014. The company pays out 40% of its earnings as dividends, and its
The Bouchard Company's EPS was $5.40 in 2019, up from $3.26 in 2014. The company pays out 40% of its earnings as dividends, and its common stock sells for $32.00.
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Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.) Round your answer to two decimal places.
%
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The last dividend was D0 = 0.40($5.40) = $2.16. Calculate the next expected dividend, D1, assuming that the past growth rate continues. Do not round intermediate calculations. Round your answer to the nearest cent.
$
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What is Bouchard's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places.
%
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
