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
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. 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 Do = 0.50($5.90) = $2.95. Calculate the next expected dividend, D, 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. %
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
14th edition
1285867971, 978-1305480742, 1305480740, 978-0357686393, 978-1285867977
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