Berger Corporation manufactures smartphone components including for iphone. Berger’s most recent operating performance reported EPS of $5 and paid a dividend of $3. Although the most recent performance appears impressive Berger’s stock price has been flat. Senior Management believes that the key to a higher stock price is to reinvest more of current earnings into the company’s including capital projects. Berger is an all equity company that has a market beta of 1, along with a risk free return of 4% and the market risk premium is estimated at 8%. In addition, Berger has a ROA of .12. Do you agree with Senior Management? You must support your answer.