es’ current EPS is $6.50. It was $4.42 5 years ago. The company pays out 40% of its earnings as dividends, and the stock sells for $36. a. Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.) b. Calculate the next expected dividend per share, D1 [D0  0.4($6.50)  $2.60]. Assume that the past growth rate will continue.

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