Question: Here are forecasts for next year for two stocks: Return on equity Earnings per share Dividends per share Stock A Stock B 145 11% $4.00
Here are forecasts for next year for two stocks: Return on equity Earnings per share Dividends per share Stock A Stock B 145 11% $4.00 53.50 $3.00 $3.00 e. 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.) Stock A Stocks Payout ratio 96 96 b. What are the expected dividend growth rates for each stock? Assume dividend has a steady growth for both stocks. (Do not round Intermediate calculatlons. Enter your answers as a percent rounded to 2 decimal places.) Stock A Stocks Growth rate 96 96 c. If Investors require a return of 14% on each stock, what are their values? (Do not round Intermediate calculations. Round final answers to 2 decimal places.) c. If investors require a return of 14% on each stock, what are their values? (Do not round Intermediate calculations. Round final answers to 2 decimal places.) PV Stock A Stock
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