Question: Emergency, please! Here are forecasts for next year for two stocks: Stock A Stock B Return on equity Earnings per share Dividends per share 17%

Emergency, please! Here are forecasts for next year for two stocks: StockA Stock B Return on equity Earnings per share Dividends per shareEmergency, please!

Here are forecasts for next year for two stocks: Stock A Stock B Return on equity Earnings per share Dividends per share 17% 14% $3.00 $2.00 $2.50 $2.00 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 % . If investors require a return of 17% on each stock, what are their values? (Do not round intermediate calculations. Round final answers to 2 decimal places.) PV Stock A Stock B

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