The Bouchard Company's EPS was $5.90 in 2019, up from $3.47 in 2014. The company pays out 50% of its earnings as dividends, and its common stock sells for $31.00.

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 = 0.50($5.90) = $2.95. 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.

$

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