Question: Return to question Here are data on two stocks, both of which have discount rates of 14%: 14 Return on equity Earnings per share Dividends


Return to question Here are data on two stocks, both of which have discount rates of 14%: 14 Return on equity Earnings per share Dividends per share Stock A 14% $2.80 $1.40 Stock B 12% $2.00 $1.40 points a. What are the dividend payout ratios for each firm? (Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Stock A 0.50 $ % Stock B 0.70 $ Dividend payout ratios % c. What is the proper stock price for each firm? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Stock A Stock B Stock price $ 21.40 $ 13.95
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