Here are data on two stocks, both of which have discount rates of 12%; Stock A Stock B Return on equity Earnings per share Dividends per share 12% 10% $2.50 $1.00 $1.40 $1.00 a. What are the dividend payout ratios for each firm? (Enter your answers as a percent rounded to 2 decimal places.) Stock A Stock B Dividend payout ratios 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 Stock B Expected dividend growth rates 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 10 of 12 Next> Prev