Calculation of OL and EPS Spencer Supplies' stock is currently selling for $60 a share. The firm is expected to earn $6.00 per share this year and to pay a year-end dividend of $4.20. a. If investors require a 10% return, what rate of growth must be expected for Spencer? Round your answer to the nearest whole number. % b. If Spencer reinvests eamings in projects with average retums equal to the stock's expected rate of return, then what will be next year's epS? (Hint: gi = ROE Retention ratio.) Do not round intermediate calculations. Round your answer to the nearest cent. 5