What is the expected return for Firm A and Firm B? Please show all necessary work... Thanks!

Short Answer (20 points) 11. Portfolio returns (50 points). Firm A. is currently trading at $55 per share, plans to pay a dividend of $0.37 next year, and then continue to grow dividends at a rate of 8.00% indefinitely. Firm B is currently trading at $142 per share, plans to pay a dividend of $6.5 next year, and then continue to grow dividends at a rate of 7.5% indefinitely. Using historical data, you estimate the standard deviation of Firm A to be 20%, the standard deviation of Firm B to be 25%, and the correlation between the two stocks to be 0.73. The risk-free rate is 2%. (a). (5pts) Assume each stock's expected return is equal to its required rate of return. What is the expected return for Firm A? What is the expected return for Firm B