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    Corlette's Avatar
    Corlette Posts: 3, Reputation: 1
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    #1

    Jul 5, 2007, 01:26 PM
    Constant-growth model
    Constant-Growth Model. Here are data on two stocks, both of which have discount rates of 15 percent:
    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?
    kieran6479's Avatar
    kieran6479 Posts: 4, Reputation: 1
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    #2

    Jul 7, 2007, 04:51 PM
    What do YOU think the answer is?

    Make an attempt at the answer, and then we will assist you.
    cpr123's Avatar
    cpr123 Posts: 8, Reputation: 1
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    #3

    Oct 7, 2007, 10:08 PM
    Quote Originally Posted by Corlette
    Constant-Growth Model. Here are data on two stocks, both of which have discount rates of 15 percent:
    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?
    7%, $1.00 per share, Dividends $1.00
    cpr123's Avatar
    cpr123 Posts: 8, Reputation: 1
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    #4

    Oct 7, 2007, 10:10 PM
    2%, $2.00 $1.00
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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...

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