Question: Here are forecasts for next year for two stocks: Return on equity Earnings per share Dividends per share Stock A Stock B 17% 11% $2.50

Here are forecasts for next year for two stocks: Return on equity Earnings per share Dividends per share Stock A Stock B 17% 11% $2.50 $2.00 $2.00 6. 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 c. 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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