Find out the dividend payout ratios for each firm


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

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

What are the dividend payout ratios for each firm.

What are the expected dividend growth rates firm.

what is the proper stock price for each firm.

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Finance Basics: Find out the dividend payout ratios for each firm
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