14. Sidman Products's common stock currently sells for $52 a share. The firm is expected to earn $5.20 per share this year and to pay a year-end dividend of $2.80, and it finances only with common equity.

a. If investors require a 10% return, what is the expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places.

b. If Sidman reinvests retained earnings in projects whose average return is equal to the stock's expected rate of return, what will be next year's EPS? (Hint: g = (1 Payout ratio)ROE). Do not round intermediate calculations. Round your answer to the nearest cent.

18. Barton Industries can issue perpetual preferred stock at a price of $50 per share. The stock would pay a constant annual dividend of $3.23 per share. If the firm's marginal tax rate is 25%, what is the company's cost of preferred stock? Round your answer to two decimal places.