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4. Constant growth stocks Aa Aa SCI just paid a dividend (Do) of $2.40 per share, and its annual dividend is expected to grow at

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4. Constant growth stocks Aa Aa SCI just paid a dividend (Do) of $2.40 per share, and its annual dividend is expected to grow at a constant rate (g) of 5.00% per year. If the required return (rs) on SCI's stock is 12.50%, then the intrinsic value of SCI's shares is $33.60 per share. Which of the following statements is true about the constant growth model? The constant growth model implies that dividend growth remains constant from now to infinity. O The constant growth model implies that dividends remain constant from now to a certain terminal year. 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. 5.25% 7.14 stock price one year from today will be $35.2800 per share. k is in equilibrium, the current expected capital gains yield on SCI's stock will be . | 7.50% 7.88% 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 $35.2800 per share. If SCI's stock is in equilibrium, the current expected capital gains yield on SCI's stock will be 5.00%

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