Here are data on two stocks, both of which have discount rates of 15%:Stock A Stock B
Return on equity...15.00%10.00%
Earnings per share...$2.00 $1.50
Dividends per share. $1.00 $1.00
Discount Rates.....15.00%15.00%
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?