Assignment: Practice Problems: Chap Save Submit Assignment for Grading Question 11 of 17 Questions Problem 11-11 9. Check My Work 10. 11. 11-7: Dividend-Yield-Plus-Growth-Rate, or Discounted Cash Flow (DCF), Approach Problem 11-11 Cost of Equity 12. 13. > Radon Homes's current EPS is $7.99. It was $4.62 5 years ago. The company pays out 60% of its earnings as dividends, and the stock sells for 14. $33. 15. a. Calculate the historical growth rate in earnings. Round your answer to two decimal places. (Hint: This is a 5-year growth period.) 11.57 16. O 17. b. Calculate the next expected dividend per share, D: Assume that the past growth rate will continue. Round your answer to the nearest cent. (Hint: Do = 0.60($7.99) - $4.79). $ $3 c. What is Radon's cost of equity, rs? Round your answer to two decimal places. Hide Feedback O Pi ND