vk pract$$ce: Knowledge Check $[$due Day $5]$ i

$$ Business has been good for Keystone Control Systems, as indicated by the six$-$year growth in earnings per share. The earnings have grown from $$1\mathrm{.}00$ to $$1\mathrm{.}80.$

a$.$ Determine the compound annual rate of growth in earnings $).($Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.$)$

Compound annual rate of growth $$

b$.$ Based on the growth rate determined in part a$,$ project earnings for next year $(E_1).($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

$$ E$1$

c$.$ Assume the dividend payout ratio is $20$ percent. Compute $D_1.($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

$$ D$1$

d$.$ The current price of the stock is $$16.$ Using the growth rate $(g)$ from part a and $(D_1)$ from part $c,$ compute $K_e.($Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.$)$

$K_{}$

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Ma

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$7$ of $10$

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