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Here are data on two stocks, both of which have discount rates of 1 5 % : Stock A Stock B Return on equity 1

Here are data on two stocks, both of which have discount rates of 15%:
Stock A Stock B
Return on equity 15%10%
Earnings per share $ 2.00 $ 1.50
Dividends per share $ 1.00 $ 1.00
a. What are the dividend payout ratios for each firm? (Enter your answers as a percent rounded to 2 decimal places.)
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.)
c. What is the proper stock price for each firm? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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