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Business has been good for Keystone Control Systems, as indicated by the eleven-year growth in earnings per share. The eamings have grown from $1.00 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 eamings have grown from $1.00 to $2.50. a. Determine the compound annual rate of growth in earnings (n=11). Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. b. Based on the growth rate determined in part a, project earnings for next year (1). Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Assume the dlvidend payout ratio is 40 percent. Compute D1. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. d. The current price of the stock is $18. Using the growth rate (al from pat as and (D) from part c, compute Ke. Note: Do not round intermediate calculations, tnput your answer as a percent rounded to 2 decimal places. e. I the flotation cost is $1,50, compute the cost of new common stock (K) ushg growth rate (0) from part a and dividend (O1) from part c. Note: Do not round intermediate calculations. Input your answer as a percent founded to 2 decimal places

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