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The following table gives Foust Companys earnings per share for the last 10 years. The common stock, 7.8 million shares outstanding is now (1/1/13) selling

The following table gives Foust Companys earnings per share for the last 10 years. The common stock, 7.8 million shares outstanding is now (1/1/13) selling for $65.00 per share. The expected dividend at the end of the current year (12/31/13) is 55% of the 2012 EPS. Because investors expect past trends to continue, g may be based on the historical earnings growth rate. (Note that 9 years of growth are reflected in the 10 years of data.) The current interest rate on new debt is 9% Foust

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