Here are forecasts for next year for two stocks:

Stock A Stock B

Return on equity $16\%14\%$

Earnings per share $ $3\mathrm{.}00$ $ $2\mathrm{.}50$

Dividends per share $ $2\mathrm{.}00$ $ $2\mathrm{.}00$

What are the dividend payout ratios for each firm?

What are the expected sustainable dividend growth rates for each stock? Assume dividend has a steady growth for both stocks.

If investors require a return of $16\%$ on each stock, what are their values?