Sidman Products's common stock currently sells for $71 a share. The firm is expected to earn $7.10 per share this year and to pay a year-end dividend of $3.30, and it finances only with common equity.

1. If investors require a 10% 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