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5. Constant growth stocks Aa Aa SCI just paid a dividend (Do) of $1.44 per share, and its 3.00% per year. If the required return (r.) on SCIs stock is 7.50%, then the intrinsic value of SCIs shares is annual dividend is expected to grow at a constant rate (g) of per share. Which of the following statements is true about the constant growth model? O When using a constant growth model to analyze a stock, if an increase in the growth rate occurs while the required return remains the same, this will lead to an increased value of the stock O When using a constant growth model to analyze a stock, if an increase in the growth rate occurs while the required return 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

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