Question: Here are forecasts for next year for two stocks Stock A Stock Return on equity 14% 1e Earnings per share $2.00 $1.50 Dividends per share

Here are forecasts for next year for two stocks Stock A Stock Return on equity 14% 1e Earnings per share $2.00 $1.50 Dividends per share $1.00 $1.ee 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 Stock B c. If investors require a return of 14% on each stock, what are the values? (Do not round intermediate calculations, Round final answers to 2 decimal places) PV Stock A Stock

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