Question
Super Carpeting Inc. (SCI) just paid a dividend of $4.00 per share today , and its annual dividend is expected to grow at a constant
Super Carpeting Inc. (SCI) just paid a dividend of $4.00 per share today, and its annual dividend is expected to grow at a constant rate (g) of 5.00% per year. If the required return on SCIs stock is 13.5%, what is the intrinsic value of SCIs shares?
| A. | $55.4 | |
| B. | $45.4 | |
| C. | $49.4 | |
| D. | $59.4 |
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Forecasting Principles And Practice
Authors: Rob J Hyndman, George Athanasopoulos
3rd Edition
0987507133, 978-0987507136
