THE ANSWERS ARE NOT 12.00 OR 11.99 FOR EARNINGS, 4.80 FOR DIVIDENDS, OR 56.60 OR 68.57 FOR THE ANTICIPATED STOCK PRICE.

Justin Cement Company has had the following pattern of earnings per share over the last five years.

Year Earnings per Share

2006 $9.00

2007 9.54

2008 10.11

2009 10.72

2010 11.32

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.

Project earnings and dividends for the next year (2011). (Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response.)

2011 Earnings $___?___ Dividend $___?___

If the required rate of return (Ke) is 13 percent, what is the anticipated stock price (Po) at the beginning of 2011? (Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response.)

Anticipated stock price $____?____