Here are data on two stocks, both of which have discount rates of 18%:

	Stock A			Stock B
Return on equity		18	%		15	%
Earnings per share	$	4.60		$	2.90
Dividends per share	$	2.30		$	2.30

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

Stock A 50% | Stock B 79.31

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 9% | Stock B 3.10%

c. What is the proper stock price for each firm???

Stock A $25.56 | Stock B ??