1 Here are data on two stocks, both of which have discount rates of 12% Stock Stock Return on equity 120 100 Earnings per share $2.60 $2.10 Dividends per share $1.30 $1.30 a. What are the dividend payout ratios for each firm? (Enter your answers as a percent rounded to 2 decimal places.) 7 Dividend payout ratios Stock A %. Stock B % b. What are the expected dividend growth rates for each stock? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Stock A Expected dividend growth rates Stock B % % c. What is the proper stock price for each firm? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Stock A Stock B Stock price