Here are forecasts for next year for two stocks: Stock A Stock B Return on equity 17 % 11 % Earnings per share $ 3.00 $ 2.50 Dividends per share $ 2.00 $ 2.00 a. What are the dividend payout ratios...


Here are forecasts for next year for two stocks:









































Stock A



Stock B


Return on equity17%11%
Earnings per share$3.00$2.50
Dividends per share$2.00$2.00


a. What are the dividend payout ratios for each firm?(Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number.)









b. What are the expected dividend growth rates for each stock? Assume dividend has a steady growth for both stocks.(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)









c. If investors require a return of 17% on each stock, what are their values?(Do not round intermediate calculations. Round final answers to 2 decimal places.)








Jun 05, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here