Question: Radon Homes' current EPS is $ 7 . 1 0 . It was $ 4 . 3 1 5 years ago. The company pays out

Radon Homes' current EPS is $7.10. It was $4.315 years ago. The company pays out 50% of its earnings as dividends, and the stock sells for $38.
Calculate the historical growth rate in earnings. (Hint: This is a 5-year growth period.) Do not round intermediate calculations. Round your answer to two decimal places.
%
Calculate the next expected dividend per share, D1.(Hint: D0=0.50($7.10)= $3.55.) Assume that the past growth rate will continue. Do not round intermediate calculations. Round your answer to the nearest cent.
$
What is Radon's cost of equity, rs? Do not round intermediate calculations. Round your answer to two decimal places.
%

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