Constant-growth model based problem

Question

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

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