Question: Business has been good for Keystone Control Systems, as indicated by the four year growth in earnings per share. The onnings have grown from $100

 Business has been good for Keystone Control Systems, as indicated by
the four year growth in earnings per share. The onnings have grown

Business has been good for Keystone Control Systems, as indicated by the four year growth in earnings per share. The onnings have grown from $100 to $3.60 a. Determine the compound annual rate of growth in earnings (n=4). (Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Compound urinaint rate of Growth b. Based on the growth toto determined in porta, project earnings for next year(s) (Do not round Intermediate calculations. Round your answer to 2 decimal places) c. Assume the dividend payout ratio is 40 percent Compute D(Do not round Intermediate calculations, Round your answer to 2 decimal places.) c. Assume the dividend payout ratio is 40 percent Compute D. (Do not round Intermediate calculations, Round your answer to 2 decimal places d. The current price of the stock is $23. Using the growth rate (g) from parts and (0) from part e, compute K (Do not round Intermediate calculations, Input your answer as a percent rounded to 2 decimal places.) e. If the flotation cost is $3.00, compute the cost of new common stock (Kn) using growth rate (a) from parts and dividend (D) from parte (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

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