Dividends per share (DPS) Dividend payout ratio Market risk premium Stock price using DDM model Number of shares outstanding Total equity Beta Ultra Co. $2.5 60% 10% $65 800,000 12,400,000 Premium Co. $3.40 65% 10% $76 1,150,000 15,240,000 1.4 1.15 1. The dividend growth rates for Ultra Co. and Premium Co. respectively, are equal to: A) 10.7%; 13.8% B) 16.1%; 25.6% C) 26.8% 39.4% D) 13.8%: 10.7% E) None of the above 2. The market capitalization rate (n) of Premium Co. exceeds that of Ultra Co. by: OA) 4.2% B) 4% C) 3.3% D) 3.8% E) None of the above