1. If the dividend expected during the coming year, D 1, is $2.00, and if g equals a constant 4%, at what price should Upton's stock sell? a. SML variables: R F = _________%; r m = __________%; b = __________. Solve the SML equation to find r s. b. Gordon Model variables: D 1 = $ __________; g = _________%; r s = __________%** **Note that r s is the solution to the SML equation just solved. Solve the Gordon Model equation to find P o.