unit 6 question 14 Sidman Products's common stock currently sells for $72 a share. The firm is expected to earn $8.64 pe

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unit 6 question 14
Sidman Products's common stock currently sells for $72 a share.
The firm is expected to earn $8.64 per share this year and to pay a
year-end dividend of $2.40, and it finances only with common
equity.
If investors require a 12% return, what is the expected growth
rate? Do not round intermediate calculations. Round your answer to
two decimal places.
%
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