Question
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
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, rs? Do not round intermediate calculations. Round your answer to two decimal places.
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College Accounting
Authors: Heintz and Parry
20th Edition
1285892070, 538489669, 9781111790301, 978-1285892078, 9780538489669, 1111790302, 978-0538745192
