Here are forecasts for next year for two stocks:

	Stock A			Stock B
Return on equity		12	%		10	%
Earnings per share	$	4.00		$	3.50
Dividends per share	$	3.00		$	3.00

a. What are the dividend payout ratios for each firm? (Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number.)

	payout ratio %
Stock A
Stock B

b. What are the expected dividend growth rates for each stock? Assume dividend has a steady growth for both stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

	growth rate %
Stock A
Stock B

c. If investors require a return of 12% on each stock, what are their values? (Do not round intermediate calculations. Round final answers to 2 decimal places.)

	PV
Stock A
Stock B