Here are data on two stocks, both of which have discount rates of 15%:

Stock A Stock B

Rate of Return 15% 10%

Earnings per share $2 $1.50

dividends per share $1 $1

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

dividend pay out ratio stock and stock B?

b.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.)

ratios

expected dividend ratios for Stock A and Stock B?

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

Stock Price for Stock A and Stock B?