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Sam's Fine Garments sells jackets and sports coats in suburban malls throughout the country. Business has been good, as indicited by the ten-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 indicited by the ten-year growth in earnings per share. The eamings have grown from $1.00 to $3.39. (Use a Financial calculator to arrive of the onswers.) a. Determine the compound annual rate of growth in earnings (n=10) Use Arpend x A. (Round the final answer to 2 decimal ploces Compound annual rate of growth b. Based on the growth rate determined in part a, project earnings for next year (E+ ) (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 35 percent. Compute Df. (Round intermediate calculations to 2 decimal places. Round the final onswer to 2 decimal places.) D1$ d. The current price of the stock is $25. Using the growth rote (g) from part a and Dy from part c compute Ke (Round compound annuol rate of growth to 2 decimal ploces, Round the final answer to 2 decimal places.) e. If the flotation cost is $2.50, compute the cost of new common stock (Kry. (Round compound annual rate of growth to 2 Becimsi places. Round intermediote calculations to 2 decimal ploces. Round the final answer to 2 decimal places.)

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