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please elaborate answers Sam's Fine Garments sells jackets and sports coats in suburban malls throughout the country, Business has been good, as indicated by the
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Sam's Fine Garments sells jackets and sports coats in suburban malls throughout the country, Business has been good, as indicated by the ten-year growth in earnings per share. The earnings have grown from $1.00 to $3.10. (Use a Financial calculator to arrive at the answers.) a. Determine the compound annual rate of growth in earnings (n=10). Use Appendix A. (Round the final answer to 2 decimal places.) Compound annual rate of growth b. Based on the growth rate determined in part a project earnings for next year (Ex. (Round compound annual rate of growth to 2 decimal places. Round the final answer to 2 decimal places.) 1198 % Et $ 3.47 c. Assume the dividend payout ratio is 15 percent Compute Dy (Round intermediate calculations to 2 decimal places. Round the final answer to 2 decimal places.) Di 052 d. The current price of the stock is $11. Using the growth rate (g) from part a and Dy from partc compute K (Round compound annual rate of growth to 2 decimal places. Round the final answer to 2 decimal places.) e. If the flotation cost is $1.50, compute the cost of new common stock (K. (Round compound annual rate of growth to 2 decimal ploces. Round Intermediate calculations to 2 decimal places. Round the final answer to 2 decimal places.) 16.71% 1745 Step by Step Solution
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