(Answered) Radon homes current eps is 646 it was 489 five years ago

Finance

Radon Homes' current EPS is $6.46. It was $4.89 five years ago. The company pays out 30% of its earnings as dividends, and the stock sells for $33.

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 the past growth rate will continue.

c. What is Radon Homes' cost of equity, rs?

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