Back to Assignment Attempts Keep the Highest/3 6. Constant growth stocks Super Carpeting Inc. just paid a dividend (De) of $1.44, and its dividend is expected to grow at a constant rate () of 2.10% per year. per share. If the required return (r.) on Super's stock is 5.25%, then the intrinsic, or theoretical market, value of Super's shares is a Which of the following statements is true about the constant growth model? When using a constant growth model to analyze a stock, if an increase in the required rate of return occurs while the growth rate remains the same, this will lead to an increased value of the stock. When using a constant growth model to analyze a stock, it an increase in the required rate of return occurs while the growth rate remains the same, this will lead to a decreased value of the stock. Use the constant growth model to calculate the appropriate values to complete the following statements about Super Carpeting Inc.: per share. 1 Super's stock is in equilibrium, the current expected dividend yield on the stock will be Super's expected stock price one year from today will be per share. If Super's stock is in equilibrium, the current expected capital gains yield on Super's stock will be per share. Grade It Now Save & Continue