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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 six-year growth in

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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 six-year growth in earnings per share. The earnings have grown from $1.00 to $177. (Use a Financial calculator to arrive at the answers.) a. Determine the compound annual rate of growth in earnings (n=6). Use Arpendix 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 (Ep. (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 45 percent. Compute Di (Round Intermediate calculations to 2 decimal places. Round the final answer to 2 decimal places.) D1 d. The current price of the stock is $23. Using the growth rate (g)from part a and Dp from partc, 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 $150.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

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