Question 60 51 Eddie Anderson, CFA, is comparing two academic publishers, Castor Education Corp. and Archer Instructions Inc. The following information is available: Castor. The company has an expected retention rate of 60% and a required return on equity of 10%. The expected growth rate of dividends is 8% and the expected eamings per share (EPS) is $12.00. The share price at the end of the period is $80.00. Archer. The company has an expected retention rate of 50% and a required return on equity of 12%. The expected growth rate of dividends is 8% and the expected EPS is $14.50. The share price at the end of the period is $70.00. Eddie usually recommends only value stocks to his clients. He compares the price-to- eamings ratio (PIE) and the dividend yield of a company with the historical industrial average to classify a stock as a value stock or growth stock. The average P/E of the industry is 15, and the dividend yield of the industry is 10% Based solely on the information given, ascertain the stock that Eddie will most likely recommend to his clients based on the described dimensions, Price-to-Earings Ratio Dividend Yield Ratio A Castor Castor B Archer Archer omicourses 42310/94876/ 21 Quiz: Comprehensive ha Archer Castor Row A Row B O Row C