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Super Carpeting Inc. (SCI) just paid a dividend (D) of $1.44 per share, and its annual dividend is expected to grow at a constant rate

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Super Carpeting Inc. (SCI) just paid a dividend (D) of $1.44 per share, and its annual dividend is expected to grow at a constant rate (g) of 3.00% per year. If the required return () on SCI's stock is 7.50%, then the intrinsic value of Sci's shares is $32,96 per share. Which of the following statements is true about the constant growth model? 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 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

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