Constant growth model, Here are information on two stocks,

Constant growth model

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Reference no: EM1363594

19 Constant-Growth Model. Here are data on two stocks, both of which have discount rates of 15percent.

Stock A Stock B
Return on equity 15% 10%
Earnings per share $2.00 $1.50
Dividends per share $1.00 $1.00

What are the dividend payout ratios for each firm.
What are the expected dividend growth rates firm
what is the proper stock price for each firm

Reference no: EM1363594

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Constant growth model : Here are information on two stocks, both of which have discount rates of 15%. Determine the dividend payout ratios for each firm.

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