The Bouchard Company's EPS was $6.50 in 2021, up from $4.42 in 2016. The company pays out 50% of its earnings as dividends, and its common stock sells for $35.00.

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 = 0.50($6.50) = $3.25. 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. $

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