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can I have some help on the last question? thank you Super Carpeting Inc. just paid a dividend (D) of $2.64, and its dividend is
can I have some help on the last question? thank you
Super Carpeting Inc. just paid a dividend (D) of $2.64, and its dividend is expected to grow at a constant rate (g) of 3.85% per year. If the required return (rs) on Super's stock is 9.63%, then the intrinsic, or theoretical market, value of Super's shares is $47.40 per share. 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, if 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.: If Super's stock is in equilibrium, the current expected dividend yield on the stock will be 5.78% per share. Super's expected stock price one year from today will be $49.31 per share. If Super's stock is in equilibrium, the current expected capital gains yield on Super's stock will be per shareStep by Step Solution
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