The Bouchard Company's EPS was $5.90 in 2019, up from $3.47 in 2014. The company pays out 60% of its earnings as dividends, and its common stock sells for $30.00.

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

--------%

b. The last dividend was D0= 0.60($5.90) = $3.54. 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.

-------$

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

--------%

Excel answer