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.

a. Project earnings and dividends for the next year (20XZ). 20YZ Earnings. $

Dividend. $

b. If the required rate of return is 13 percent, what is the anticipated share price at the beginning of 20XZ?

Anticipated stock price. $

Problem 10-30 Rick's Department Stores has had the following pattern of earnings per share over the last five years: Year Earnings per share $10.se 18.50 28X 20 28XX 11.58 12.16 28XY 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. a. Project earnings and dividends for the next year (20XZ). (Do not round Intermediate calculations. Round the final answers to 2 decimal places.) 2exz S Larnings Dividend b. If the required rate of return is 13 percent. What is the anticipated share price at the beginning of 20XZ? (Do not round Intermediate calculations. Round the final answer to 2 decimal places.) Anticipated stock price S Prev 10 11 ho