atapprich
Jun 20, 2007, 06:43 PM
Two stocks both have discount rates of 15%
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
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