Given the following data for Carpet Co. and Rugs Inc., answer questions 1 and 2 below: Rugs Inc. Carpet Co. $2.9 $3.6 56% 58% 12% 12% Dividends per share (DPS) at t-0 Dividend payout ratio Market risk premium Stock price using DDM model Number of shares outstanding Total equity $62 $71 0.9 million 1.1 million $11.63 million $15.36 million Beta 1.25 1.3 1. The dividend growth rates for Carpet Co. and Rugs Inc. respectively, are 8 points equal to: a 25.78%, 22.44% O b. 18.67%; 17.63% O c. 22.44%, 25.78% O d. 17.63%; 18.67% O e. None of the above 2. The market capitalization rate of Rugs Inc. exceeds that of Carpet Co. by: * a. 1.43% b. 1.69% O c. 1.55% d. 1.96% e. None of the above