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Sidman Products's common stock currently sells for $68 a share. The firm is expected to earn $8.16 per share this year and to pay a year-end dividend of $4.00, and it finances only with common equity.

1. If investors require a 12% return, what is the expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. %
2. 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