Justin Cement Company has had the following pattern of earnings per share over the last five years: Year 20X1 20x2 20x3 20X4 20X5 Earnings per Share $10.00 10.60 11.24 11.91 12.62 The earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future. Dividends represent 40 percent of earnings. a. Project earnings and dividends for the next year (20X6). (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 b. If the required rate of return (Ke) is 13 percent, what is the anticipated stock price (Pe) at the beginning of 20X6? (Round the growth rate to the nearest whole percent. Do not round any other intermediate calculations. Round your answer to 2 decimal places.) Anticipated stock price Speedy Delivery Systems can buy a piece of equipment that is anticipated to provide an 12 percent return and can be financed at 9 percent with debt. Later in the year, the firm turns down an opportunity to buy a new machine that would yield a 20 percent return but would cost 22 percent to finance through common equity. Assume debt and common equity each represent 50 percent of the firm's capital structure. a. Compute the weighted average cost of capital. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Weighted average cost of capital % b. Which project(s) should be accepted? New machine. O Piece of equipment