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Rick's Department Stores has had the following pattern of earnings per share over the last five years: Year 2eXu 20xV 20W 20xx 2exy Earnings per

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Rick's Department Stores has had the following pattern of earnings per share over the last five years: Year 2eXu 20xV 20W 20xx 2exy Earnings per share $4.89 4.24 4.49 4.76 5.05 01 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. 0. Project earnings and dividends for the next year (2007). (Do not round intermediate calculations. Round the final answers to 2 decimal places.) 20xz $ Earnings Dividend $ b. If the required rate of return is 13 percent, what is the anticipated share price at the beginning of 20XZ? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Anticipated stock price $

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