Super Carpeting Inc. just paid a dividend (D0) of $1.92, and its dividend is expected to grow at a constant rate (g) of 2.80% per year.

If the required return (rs) on Supers stock is 7.00%, then the intrinsic, or theoretical market, value of Supers shares is per share.

a) $28.20

b) $27.43

c) $46.90

d) $48.91

Which of the following statements is true about the constant growth model?

The constant growth model implies that dividends remain constant from now to a certain terminal year.

The constant growth model implies that dividend growth remains constant from now to infinity.