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Super Carpeting Inc. just paid a dividend (D0 ) of $1.44, and its dividend is expected to grow at a constant rate (g) of 2.10%
Super Carpeting Inc. just paid a dividend (D0 ) of $1.44, and its dividend is expected to grow at a constant rate (g) of 2.10% per year. If the required return (rs ) on Supers stock is 5.25%, then the intrinsic, or theoretical market, value of Supers shares is $46.67 per share.
Use the constant growth model to calculate the appropriate values to complete the following statements about Super Carpeting Inc.:
If Supers stock is in equilibrium, the current expected dividend yield on the stock will be (3.22%, 3.15%, 3.09%, 2.14%) per share. | |
Supers expected stock price one year from today will be ($46.67, $47.62, $45.71, $28.57) per share. | |
If Supers stock is in equilibrium, the current expected capital gains yield on Supers stock will be (102.04%, 1.84%, 2.45%, 2.04%) per share. |
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