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15. Problem 10.17 (Calculation of g and EPS) ook Sidman Products's common stock currently sells for $63 a share. The firm is expected to earn

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15. Problem 10.17 (Calculation of g and EPS) ook Sidman Products's common stock currently sells for $63 a share. The firm is expected to earn $5.67 per share this year and to pay year-end dividend of $3.20, and it finances only with common equity. a. If investors require a 9% 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 per share

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