D cengageBrain My Home x OAplia Student Question x C chegg Study I Guided s C fi
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D cengageBrain My Home x OAplia Student Question x C chegg Study I Guided s C fi courses.aplia.com/af/servlet/quiz?ctx syildiz-0005&quiz; action Quiz&quiz; probGuid QNAPCOA801010000002e80c44 90060000& 4 1460948772664 0AAAAA0559014F7497449EC4F30000 Which of the following statements is true about the constant growth model? O The constant growth model implies that dividend growth remains constant from now to infinity. O The constant growth model implies that dividends remain constant from now to a certain terminal year. Use the constant growth model to calculate the appropriate values to complete the following statements about Super Carpeting Inc. If Super's stock is in equilibrium, the current expected dividend yield on the stock will be per share. Super's expected stock price one year from today will be per share If Super's stock is in equilibrium, the current expected capital gains yield on Super's stock will be 4.52% 9.11% 0.30% 5.42% Suggestions l Session 59:27 Timeout 4/17/2016Explanation / Answer
1) constant growth model implies that dividends growth rate remains costant frowm now to infinity is true.
2) when stock is in equilibrium i.e stable the expected dividend yield of the stock will be in constant growth
3) Sper stock expected price from one year now = current stock price+expected dividend.
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