Question: Saved Here are data on two stocks, both of which have discount rates of 20%: Stock A Stock B Return on equity 20% 15% Earnings

Saved Here are data on two stocks, both of which have discount rates of 20%: Stock A Stock B Return on equity 20% 15% Earnings per share $4.50 $2.60 Dividends per share $1.80 $1.80 a. What are the dividend payout ratios for each firm? (Enter your answers as a percent rounded to 2 decimal places.) Stock A Stock B Dividend payout ratios % b. What are the expected dividend growth rates for each stock? (Do not round Intermediate calculations. Enter your answers as percent rounded to 2 decimal places.) Stock A Stock B Expected dividend growth rates 9% c. What is the proper stock price for each firm? (Do not round Intermediate calculations. Round your answers to 2 decimal places Stock A Stock B Stock price

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