The Bouchard Company’s EPS was $6.14 in 2012, up from $3.87

Assignment Help Finance The Bouchard Company’s EPS was $6.14 in 2012, up from $3.87

Finance

The Bouchard Company’s EPS was $6.14 in 2012, up from $3.87

The Bouchard Company’s EPS was $6.14 in 2012, up from $3.87 in 2… Show more Problem 10-16 Cost of Common Equity The Bouchard Company’s EPS was $6.14 in 2012, up from $3.87 in 2007. The company pays out 35% 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 = 0.35($6.14) = $2.15. 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. % • Show less

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