Question
Justin Cement Company has had the following pattern of earnings per share over the last five years: Year Earnings Per Share 20X1 $ 8.00 20X2
Justin Cement Company has had the following pattern of earnings per share over the last five years:
Year | Earnings Per Share | ||
20X1 | $ | 8.00 | |
20X2 | 8.48 | ||
20X3 | 8.99 | ||
20X4 | 9.53 | ||
20X5 | 10.10 | ||
|
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.)
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