Business has been good for Keystone Control Systems, as indicated by the four-year growth in...

Business has been good for Keystone Control Systems, as indicated by the four-year growth in earnings per share. The earnings have grown from $1.00 to $1.63. a. Use Appendix A at the back of the text to determine the compound annual rate of growth in earnings (n=4).b. Based on the growth rate determined in part a, project earnings for next year (E1). Round to two places to the right of the decimal point. c Assume the dividend payout ratio is 40 percent. Compute D1. Round to two places to the right of the decimal point. D The current price of the stock is $50. Using the growth rate (g) from part a and (D1) from part c, compute Ke.E If the flotation cost is $3.75, compute the cost of new common stock (Kn).” – Sent to Economics Expert Tutor on 9/29/2010 at 12:47pm