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? the constant growth model implies that dividend growth remains constant from now to infinity. 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 sci’s stock is in equilibrium, the current expected dividend yield on the stock will be per share. • sci’s expected stock price one year from today will be per share. • if sci’s stock is in equilibrium, the current expected capital gains yield on sci’s stock will be per share.

Ben collins plans to buy a house for $166,000. if the real estate in his area is expected to increase in value by 2 percent each year, what will its approximate value be five years from now?

10. which of the following is true regarding preretirement inflation? a. defined-benefit plans provide more inflation protection than defined-contribution plans. b. because of preretirement inflation, possible investment-related growth is increased for defined-contribution plans. c. all types of benefits are designed to cope with preretirement inflation. d. preretirement inflation is generally reflected in the increase in an employee's compensation level over a working career.

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51