Super Carpeting Inc. $($SCI$)$ just paid a dividend $(D_p)$ of $$2\mathrm{.}40$ per share, and its annual dividend is expected to grow at a constant rate $(9)$ of $5\mathrm{.}00\%$ per year, If the required return $(r_s)$ on SCI's stock is $12\mathrm{.}50\%,$ then the intrinsic value of SCI's shares is $$ 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 more than its required return.

The constant growth model can be used if a stock's expected constant growth rate is less than its required return.