Business, 06.05.2020 06:15 blackchina71

Super Carpeting Inc. (SCI) just paid a dividend (D₀) of $2.88 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.00% per year. If the required return (r s ) on SCI’s stock is 15.00%, then the intrinsic value of SCI’s shares is per share.

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

A. The constant growth model can be used if a stock's expected constant growth rate is less than its required return
B. The constant growth model can be used if a stock's expected constant growth rate is more than its required return.

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Super Carpeting Inc. (SCI) just paid a dividend (D₀) of $2.88 per share, and its annual dividend is...

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