Question: help with c Here are data on two stocks, both of which have discount rates of 14%: Return on equity Earnings per share Dividends per

 help with c Here are data on two stocks, both of

which have discount rates of 14%: Return on equity Earnings per share

help with c

Here are data on two stocks, both of which have discount rates of 14%: Return on equity Earnings per share Dividends per share Stock A 14% $1.50 $1.20 stock B 10% $1.40 $1.20 a. What are the dividend payout ratios for each firm? (Enter your answers as a percent rounded to 2 decimal places.) Answer is complete and correct. Stock B Stock A 840 0% Dividend payout ratios 85.72 b. What are the expected dividend growth rates for each stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete and correct. Stock A Expected dividend growth rates Stock B 1.43% 2.80 % c. What is the proper stock price for each firm? (Do not round intermediate calculations. Round your answers to 2 decimal places.) & Answer is complete but not entirely correct. Stock A Stock B Stock price 1 $ 11.01 X $ 9.68

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!