Problem 7-21 Constant-Growth Model (LO2) Here are data on two stocks, both of which have discount...

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Problem 7-21 Constant-Growth Model (LO2) Here are data on two stocks, both of which have discount rates of 14%: Return on equity Earnings per share Stock A 14% $ 1.50 Stock B 10% $ 1.40 Dividends per share $ 1.20 $ 1.20 a. What is the dividend payout ratio for each firm? Note: Enter your answers as a percent rounded to 2 decimal places. Stock A Stock B Dividend payout ratios 80.00 % 85.71 % b. What is the expected dividend growth rate for each stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Stock A Stock B Expected dividend growth rates % % c. What is the value of each stock? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Stock A Stock B Stock price Problem 7-21 Constant-Growth Model (LO2) Here are data on two stocks, both of which have discount rates of 14%: Return on equity Earnings per share Stock A 14% $ 1.50 Stock B 10% $ 1.40 Dividends per share $ 1.20 $ 1.20 a. What is the dividend payout ratio for each firm? Note: Enter your answers as a percent rounded to 2 decimal places. Stock A Stock B Dividend payout ratios 80.00 % 85.71 % b. What is the expected dividend growth rate for each stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Stock A Stock B Expected dividend growth rates % % c. What is the value of each stock? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Stock A Stock B Stock price