Spencer Supplies' stock is currently selling for $$60$ a share. The firm is expected to earn $$5\mathrm{.}70$ per share this year and to pay a year$-$end dividend of $$3\mathrm{.}00.$

a$.$ If investors require a $9\mathrm{.}5\%$ return, what rate of growth must be expected for Spencer? Round your answer to two decimal places.

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b$.$ If Spencer reinvests earnings in projects with average returns equal to the stock's expected rate of return, then what will be next year's EPS? $($Hint: $g_L=$ ROE $$ Retention ratio.$)$ Do not round intermediate calculations. Round your answer to the nearest cent.

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