Radon Homes's current EPS is $6.34. It was $4.85 5 years ago. The company pays out 50% of its earnings as dividends, and the stock sells for $37. Calculate the historical growth rate in earnings. (Hint: This is a 5-year growth period.) Calculate the next expected dividend per share, D1 (Hint: D0 = 0.50($6.34) = $3.17). Assume that the past growth rate will continue. Round your answer to the nearest cent. What is Radon's cost of equity, rs?