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XSam's Fine Garments selb he Notan n finds Help Seve a Sam's Fine Garments sells jackets and sports coats in suburban malls throughout the country.

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XSam's Fine Garments selb he Notan n finds Help Seve a Sam's Fine Garments sells jackets and sports coats in suburban malls throughout the country. Business has been good, as indicated by the five-year growth in eamings per share The earnings have grown from $100 to $192 (Use a Financial colculetor to arrive at the answers.) a. Determine the compound annual rate of growth in earnings (n-5) 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 (EJ (Round compound annual rate of growth to 2 decimal places. Round the finel answer to 2 decimal ploces) c. Assume the dividend payout ratio is 25 percent. Compute Dr (Round intermediate calculetions to 2 decimal places. Round the final answer to 2 decimal places) d. The current price of the stock is $22. Using the growth rate (g/ from part a and Drfrom part c. 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 S3 00, compute the cost of new common stock (Round compound annual rete of growth to 2 decimal places. Round intermediate calculations to 2 decimal places. Round the final answer to 2 decimal pleces) C Prey 5of7 Next>

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