Here are forecasts for next year for two stocks:

$$Stock AStock BReturn on equity$18\%13\%$Earnings per share$ $3\mathrm{.}00$$ $2\mathrm{.}50$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 $18\%$ on each stock, what are their values?