Stock is in equillibrium-current expected dividend yield

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Super carpeting Inc just paid a dividend (Do) of $1.44, and its dividend is expected to grow at a constant rate (g) of 3% per year. if the required (rs) on Super's stock is 7.5%, what is the intrinsic value of Super's shares?

a) 32.00 b)35.43 c)33.95 d)32.96

Use the constant growth model to calculate the appropriate values for the following sentences:

1) Stock is in equillibrium, current expected dividend yield on stock is _____per share

a) 4.64% b)4.5% c)4.37% d)3.09%

2) Stock in equillibrium, current expected capital gains yield on stock will be____.

a) .14% b) 9.39% c) 3% d)3.6%

Reference no: EM131581066

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