Question
The Bouchard Company's EPS was $6.80 in 2021, up from $3.34 in 2016. The company pays out 60% of its earnings as dividends, and its
The Bouchard Company's EPS was $6.80 in 2021, up from $3.34 in 2016. The company pays out 60% of its earnings as dividends, and its common stock sells for $38.00.
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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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The last dividend was D0 = 0.60($6.80) = $4.08. 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.
$
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What is Bouchard's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places.
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ISE Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
18th International Edition
1265074658, 9781265074654
