Problem 10-31 (Algo) Common stock value based on determining growth rate [LO10-5] Justin Cement Company has had the following pattern of earnings per share over the last five years: Earnings per Share Year 20X1 $ 8.00 20X2 8.40 20X3 8.82 20X4 9.26 9.69 20X5 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). Note: Round the growth rate to the nearest whole percent. Do not round any other intermediate calculations. Round your answers to 2 decimal places. Earnings Dividend 20X6 b. If the required rate of return (Ke) is 13 percent, what is the anticipated stock price (Po) at the beginning of 20X6? Note: 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