What are the expected dividend growth rates for each firm

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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? 

Reference no: EM13940413

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