Acme Companys stock is currently selling for $60 per share. The firm is expected to earn $3.24 per share this year and to pay a year-end dividend of $1.65. If investors require a 12% return and Acme reinvests earnings in projects with average returns equal to the stocks expected rate of return, then what will be next years EPS?

$2.89

$4.32

$3.43

$3.77