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YYY Company s current EPS is $ 5 . It was $ 3 five years ago. The company pays out 5 0 % of its

YYY Companys current EPS is $5. It was $3 five years ago. The company pays out 50% of its earnings as dividends, and the stock sells for $50.
a. Calculate the historical growth rate in earnings. [Hint: this is a 5-year growth period.]
b. Calculate the next expected dividend per share, D1. Assume that past growth will continue.
c. What is YYY Companys cost of equity, rs? Please help me to solve step by step.

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