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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 $100 to

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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 $100 to $170. a. Determine the compound annual rate of growth in earnings (n=11). (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 (E1) (Do not round intermediate calculations. Round your answer to 2 decimal places.) E1 c. Assume the dividend payout ratio is 45 percent Compute D (Do not round Intermartiate calculations. Round your answer to 2 C. Assume the dividend payout ratio is 45 percent. Compute D1 (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. The current price of the stock is $17. Using the growth rated from parts and (D) from part intermediate calculations, Input your answer os a percent rounded to 2 decimal places.) compute Re (Do not round Ko e. If the flotation cost is $2.00, compute the cost of new common stock (n) using growth rate (g) from part a and dividend (1) from d. The current price of the stock is $17. Using the growth rated from part a and (D) from partc compute Ke (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Ke % e. If the flotation cost is $2.00, compute the cost of new common stock (Kn) using growth rate from parta and dividend (D) from part c. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

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