The Bouchard Company's EPS was $$6\mathrm{.}50$ in $2021,$ up from $$4\mathrm{.}42$ in $2016.$ The company pays out $30\%$ of its

earnings as dividends, and its common stock sells for $$32\mathrm{.}00.$

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

decimal places.

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b$.$ The last dividend was $D_0=0\mathrm{.}30($$$6\mathrm{.}50)=$$$1\mathrm{.}95.$ 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.

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c$.$ What is Bouchard's cost of retained earnings, $r_s?$ Do not round intermediate calculations. Round your answer to

two decimal places.

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