The Bouchard Company's EPS was $$6\mathrm{.}80$ in $2021,$ up from $$3\mathrm{.}34$ in $2016.$ The company pays out $50\%$ of its earnings as dividends, and its

common stock sells for $$35\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{.}50($$$6\mathrm{.}80)=$$$3\mathrm{.}40.$ 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, $r_5?$ Do not round intermediate calculations. Round your answer to two decimal places.

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