Part II

Your preliminary analysis of two stocks has yielded the information set forth below. The return for the market is $10$ percent and the risk$-$free rate is $5$ percent.

$\backslash$table$[[,$A$,$B$],[\backslash$table$[[$Beginning of the year$],[$earning per share $($$$)]],5,3],[$Company payout policy,$40\%,60\%$