Super Carpeting Inc. (SCI) just paid a dividend (D) of $1.92 per share, and its annual dividend is expected to grow at a constant rate (g) of 4.00% per year. If the required return (rss) on SCIs stock is 10.00%, then the intrinsic value of SCIs shares is per share.

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

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

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

Use the constant growth model to calculate the appropriate values to complete the following statements about Super Carpeting Inc.:

	If SCIs stock is in equilibrium, the current expected dividend yield on the stock will be_____ per share.
	SCIs expected stock price one year from today will be____ per share.
	If SCIs stock is in equilibrium, the current expected capital gains yield on SCIs stock will be____ per share.