Question: Super Carpeting Inc. (SCI) just paid a dividend ( D0 ) of $1.68 per share, and its annual dividend is expected to grow at a

 Super Carpeting Inc. (SCI) just paid a dividend ( D0 )

Super Carpeting Inc. (SCI) just paid a dividend ( D0 ) of $1.68 per share, and its annual dividend is expected to grow at a constant rate ( g ) of 3.50% per year. If the required return (rs) on SCI's stock is 8.75%, then the intrinsic value of SCI's shares is per share. Which of the following statements is true about the constant growth model? The constant growth model can be used if a stock's expected constant growth rate is less than its required return. The constant growth model can be used if a stock's expected constant growth rate is more than its required return. Use the constant growth model to calculate the appropriate values to complete the following statements about Super Carpeting Inc.: - If SCI's stock is in equilibrium, the current expected dividend yield on the stock will be per share. - SCI's expected stock price one year from today will be per share. - If SCI's stock is in equilibrium, the current expected capital gains yield on SCI's stock will be per share

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