Justin Cement company had the following pattern of earnings per share over the

Justin Cement company had the following pattern of earnings per share over the last 5 years:

Year Earnings per share

2006 $11.00

2007 $11.55

2008 $12.13

2009 $12.74

2010 $13.38

The earnings per share have grown at a constant rate (on a rounded basis) and is expected to do so in he future. Dividends represent 40% of earnings.

a. Project earnings and dividends for the next year (2011). Round intermediate and final answers to 2 decimal places

Earnings?

Dividends?

b. If the required rate of return (Ke) is 13% what is the anticipated stock price (Po) at the beginning of 2011? Round your intermediate and final answers 2
decimal places.

Anticipated stock price?