Check my work 5 Problem 10-31 Common stock value based on determining growth rate [LO10-5) 10 porn Justin Cement Company has had the following pattern of earnings per share over the last five years 1 References Year 20x1 20X2 2003 20x4 2035 En pee Share 51100 11.55 12.13 12.74 13:38 The earnings per share have grown at a constant rate (on a rounded base and will continue to do so in the future Dividende represent 40 percent of earnings a. Project earnings and dividends for the next year (206) (Round the growth rate to the nearest whole percent. Do not round any other intermediate calculations. Round your answers to 2 decimal places) 20X6 Earnings Dividend MC

Earnings Dividend b. If the required rate of retum (K)is 13 percent, what is the anticipated stock price IPo) at the beginning of 20X6? (Round the growth Fate to the nearest whole percent. Do not round any other intermediate calculations. Round your answer to 2 decimal places) Anticipated nlock price w 4 00211 PM Question 5. Chapter DELL