Super Carpeting Inc. (SCI) just paid a dividend (D) of $3.12 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.50% per year. If the required return (rss) on SCIs stock is 16.25%, then the intrinsic value of SCIs shares is ? per share.

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

A) 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.

B) 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 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.