Urban Drapers has a sister company named Super Carpeting Inc. (SCI). SCI just paid a dividend (D 00 ) of $3.12 per share, and its annual dividend is expected to grow at a constant rate (g LL ) of 6.50% per year. If the required return (r ss ) on SCI’s stock is 16.25%, then the intrinsic value of SCI’s shares is per share.

6x 2.54 is 15.24, answer is c

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.