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5. Constant growth stocks Super Carpeting Inc. (SCI) just paid a dividend (D) of $3.12 per share, and its annual dividend is expected to grow

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5. Constant growth stocks Super Carpeting Inc. (SCI) just paid a dividend (D) of $3.12 per share, and its annual dividend is expected to grow at a constant rate () of 6.50% per year. If the required return () on SCI's stock is 16.25%, then the intrinsic value of Scr'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 it a stock's expected constant growth rate is more than its required return ry Use the constant growth model to calculate the appropriate values to complete the following statements about Super Carpeting inci: per share . If SCI's stock is in equilibrium, the current expected dividend yield on the stock will be . SCI's expected stock price one year from today will be V per share If SCI's stock is in equilibrium, the current expected capital gains yield on Set's stock will be per share

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