The Bouchard Company's EPS was $5.92 in 2016, up from $3.52 in 2011. The company pays out 45% of its earnings as dividends, and its common stock sells for $34.

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 = 0.45($5.92) = $2.66. Calculate the next expected dividend, D1, assuming that the past growth rate continues. Do not round off intermediate calculations. Round your answer to the nearest cent. $

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