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

Business has been good for Keystone Control Systems, as indicated by the eleven-year growth in earnings per share. The earnings have grown from $1.00 to $2.50.
a. Determine the compound annual rate of growth in earnings )=(11.
Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.
Compound annual rate of growth
8.69
b. Based on the growth rate determined in part a, project earnings for next year (E1).
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
\table[[E1,$,2.74]]
c. Assume the dividend payout ratio is 40 percent. Compute D1.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
\table[[D1,$,1.09]]
d. The current price of the stock is $18. Using the growth rate (g) from part a and (D1) from part c, compute Ke. Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.
\table[[Ke,14.73,%
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