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The Bouchard Company's EPS was $6.50 in 2012 up from $4.42 in 2007. The company pays out 40% of iots earnings as dividends and its common stock sells for $36.00 a. Calculate the past growth rate in earnings (5 years) b. The last dividend was D0=0.4($6.5)=$2.6. Calculare the next expected dividend D1 assuming that the past growth rate continues. b. What is Bouchard's cost of retained earnings?

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