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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 thirteen-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 thirteen-year growth in earnings per share. The earnings have grown from $1.00 to $3.88 (Use a Finaneial calculator to arrive at the answers.) a. Determine the compound annual rate of growth in earnings (n=13). 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 ( Eq ). (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$ to 2 decimal places. Round the final answer to 2 decimal places.) Ef 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.) Di \$ d. The current price of the stock is $18. Using the growth rate (g) from part a and Dffrompart, compute Ke (Round compound annual rate of growth to 2 decimal places. Round the final answer to 2 decimal places.) e. If the flotation cost is $1.50, 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.)

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