FORMULA APPROACH ONLY- No Excel or Calculator

Gidman Products's common stock currently sells for $62 a share. The firm is expected to eam $6,20 per share this year and to pay a year-end dividend of $3.10, and it inances 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. %6 b. If Sidman reimvests retained earnings in projects whose average retum 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. 5 per share