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The Bouchard Company's EPS was $6.96 in 2012, up from $3.34 in 2007. The company pays out 50% of its earnings as dividends, and its
The Bouchard Company's EPS was $6.96 in 2012, up from $3.34 in 2007. The company pays out 50% of its earnings as dividends, and its common stock sells for $31.
- 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 = 0.50($6.96) = $3.48. Calculate the next expected dividend, D1, assuming that the past growth rate continues. Round your answer to the nearest cent. $
- What is Bouchard's cost of retained earnings, rs? Round your answer to two decimal places.
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