Here are data on two stocks, both of which have discount rates of 12%:

	Stock A			Stock B
Return on equity		12	%		10	%
Earnings per share	$	2.50		$	1.40
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.)

Stock A?

Stock B?

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?

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?