Here are data on two stocks, both of which have discount rates of 8%:

	Stock A			Stock B
Return on equity		8	%		5	%
Earnings per share	$	2.60		$	1.80
Dividends per share	$	1.30		$	1.30

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 % %

What are the expected dividend growth rates for each firm? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

	Stock A	Stock B
Expected dividend growth rates	%	%

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	$	$