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5. Constant growth stocks Aa Aa Super Carpeting Inc. just paid a dividend (Do) of $1.68, and its dividend is expected to grow at a
5. Constant growth stocks Aa Aa Super Carpeting Inc. just paid a dividend (Do) of $1.68, and its dividend is expected to grow at a constant rate (g) of 3.50% per year. If the required return (rs) on super's stock is 8.75%, what is the intrinsic value of Super's shares? O $33.12 per share O $34.80 per share $34.28 per share O $36.02 per share Which of the following statements is true about the constant growth model? O 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
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