Here are forecasts for next year for two stocks:

Stock A Stock B Return on equity 18 % 12 % Earnings per share $ 2.00 $ 1.50 Dividends per share $ 1.00 $ 1.00 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.)

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.)

c. If investors require a return of 18% on each stock, what are their values? (Do not round intermediate calculations. Round final answers to 2 decimal places.)