C 10 CHII HW 9 aw Check my work Problem 11-18 Growth rates and common stock valuation (LO11-3] Business has been good for Keystone Control Systems, as indicated by the four-year growth in earnings per share The earnings have grown from $100 to $2.34 a. Determine the compound annual rate of growth in earnings (4) (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places) Biok Compound annual rade of growth Round b. Based on the growth rate determined in part a, project earnings for next year (E) (Do not round intermediate calcul your answer to 2 decimal places.) E1 hat Momentet Save & Exit Submit W Help Check my work c. Assume the dividend payout ratio is 60 percent. Compute D (Do not round intermediate calculations. Round your answer to 2 decimal places.) 01 d. The current price of the stock is $22. Using the growth rate (g) from part a and (D) from part c, compute K. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Ke % DON m exces e. If the flotation cost is $2.50, compute the cost of new common stock (K) using growth rate (g) from part a and dividend (D) from part c. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Kn ENG 12:40 PM 5/2/2022