a. The dividend payout ratios for each firm a and firm b is 60% and 78.26%
b. The expected dividend growth rates for each stock is For firm A and for firm B is 6% and 2.61 %.
c. The proper stock price for each firm A and firm B is $ 20 and $ 19.17.
A dividend is the distribution of a organization's earnings to its shareholders and is determined by means of the agency's board of directors. Dividends are regularly distributed quarterly and may be paid out as cash or within the form of reinvestment in extra stock.
A dividend is a distribution of income by a employer to its shareholders. whilst a enterprise earns a earnings or surplus, it may pay a share of the earnings as a dividend to shareholders. Any amount not allotted is taken to be re-invested in the business.
Dividend refers to a reward, cash or in any other case, that a organization gives to its shareholders. Dividends can be issued in numerous bureaucracy, along with cash fee, shares or some other shape.
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