What are the dividend pay-out ratios for each firm

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Reference no: EM133178460

Question - Given the information below,

 

Stock A

Stock B

Return on Equity

15%

10%

Earnings per share

R2

R1.50

Dividend per share

R1

R1

Answer the following:

a. What are the dividend pay-out ratios for each firm?

b. What are the expected dividend growth rates for each stock?

c. If investors require a return of 15% on each stock, what are their values?

Reference no: EM133178460

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