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 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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