Problem 11-18 Growth rates and common stock valuation (LO11-3) Business has been good for Keystone Control Systems, as indicated by the thirteen-year growth in earnings per share. The earnings have grown from $100 to $2.41 a. Determine the compound annual rate of growth in earnings (n = 13). (Do not round intermediate calculations, Input your answer as a percent rounded to 2 decimal places.) Answer is complete and correct. Compound annual rate of growth 7.00% b. Based on the growth rate determined in part a, project earnings for next year (E) (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. $ 2.58 E1 c. Assume the dividend payout ratio is 45 percent Compute D. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. 01 $ 0.65 d. The current price of the stock is $20. Using the growth rate (g) from part a and (D) from part compute K (Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. 10.82% e. If the flotation cost is $1.50, compute the cost of new common stock (K) using growth rate (g) from part a and dividend (01) from part C. (Do not round intermediate calculations, Input your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Kn 1105