Determine what is bouchards cost of retained earnings-rs

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The Bouchard Company's EPS was $5.92 in 2012, up from $3.52 in 2007. The company pays out 60% of its earnings as dividends, and its common stock sells for $34.

Calculate the past growth rate in earnings.

The last dividend was D0 = 0.60($5.92) = $3.55. Calculate the next expected dividend, D1, assuming that the past growth rate continues

What is Bouchard's cost of retained earnings, rs?

Reference no: EM13335414

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