What are the dividend payout ratios for firm

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1) Here are data on two stocks, investor required return is 15 percent:

Stock A

Stock B

Return on Equity

Earnings Per Share

Dividends per share

12%

$2.00

$1.00

10%

$1.50

$1.00

a. What are the dividend payout ratios for each firm?

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

c. What is the proper stock price for each firm?

Reference no: EM132523465

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