Sam's Fine Garments sells jackets and sports coats in suburban malls throughout the country. Business has been good, as indicated by the eightyear growth in earnings per share. The earnings have grown from $1.00 to \$1.99. (Use a Financial calculator to arrive at the answers.) a. Determine the compound annual rate of growth in earnings (n=8). Use Appendix A. (Round the final answer to 2 decimal places.) Compound annual rate of growth % b. Based on the growth rate determined in part a, project earnings for next year (E1). (Round compound annual rate of growth to 2 decimal places. Round the final answer to 2 decimal places.) E1$ c. Assume the dividend payout ratio is 25 percent. Compute D1. (Round intermediate calculations to 2 decimal places. Round the final answer to 2 decimal places.) D1$ d. The current price of the stock is $25. Using the growth rate (g) from part a and D1 from part c, compute Ke. (Round compound annual rate of growth to 2 decimal places. Round the final answer to 2 decimal places.) Ke% e. If the flotation cost is $2.00, compute the cost of new common stock (Kn). (Round compound annual rate of growth to 2 decimal places. Round intermediate calculations to 2 decimal places. Round the final answer to 2 decimal places.) kn \%