The Bouchard Company's EPS was $6.10 in 2021, up from $3.95 in 2016. The company pays out 40% of its earnings as dividends, and its common stock sells for $37.00.

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 D₀ = 0.40($6.10) = $2.44. Calculate the next expected dividend, D₁, 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, r_s? Do not round intermediate calculations. Round your answer to two decimal places.

%