Here are data on two stocks, both of which have discount rates of 10%:

Return on Equity Stock A: 10% Stock B: 8%

Earnings per share Stock A: $2.50 Stock B: $1.50

Dividends per share Stock A: $1.00 Stock B: $1.00

What are the dividend payout ratios for each firm? Enter your answer as a percent rounded to 2 decimal places.

Dividend Payout Ratio: Stock A:

Dividend Payout Ratio: Stock B:

(.40/.67 are incorrect)

What is the proper stock price for each firm? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Stock Price: Stock A:

Stock Price: Stock B:

(26.50/14.00 are incorrect)