The Bouchard Company's EPS was $6.50 in 2018, up from $4.42 in 2013. The company pays out 40% of its earnings as dividends, and its common stock sells for $33.00. Calculate the past growth rate in...

The Bouchard Company's EPS was $6.50 in 2018, up from $4.42 in 2013. The company pays out 40% of its earnings as dividends, and its common stock sells for $33.00.

1. Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.) Round your answer to two decimal places.
    %
   
   
   
   
   


2. The last dividend was D₀
   = 0.40($6.50) = $2.60. 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.
   $
   
   
   
   
   


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