The Bouchard Company's EPS was $$6\mathrm{.}10$ in $2021,$ up from $$3\mathrm{.}95$ in $2016.$ The company pays out $40\%$ of its earnings as dividends, and its common stock sells for $$35\mathrm{.}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 D$0=0\mathrm{.}40($$$6\mathrm{.}10)=$ $$2\mathrm{.}44.$ Calculate the next expected dividend, D$1,$ 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