Problem $7-21$ Constant$-$Growth Model $($LO$2)$

Here are data on two stocks, both of which have discount rates of $10\%$:

Stock A Stock B

Return on equity $10\%8\%$

Earnings per share $ $2\mathrm{.}40$ $ $1\mathrm{.}40$

Dividends per share $ $1\mathrm{.}20$ $ $1\mathrm{.}20$

What is the value of each stock?