1. Referring to the prices for the Standard and Poor's Composite Stock Price Index on the left in the gure below (from Shiller's analysis of the EMH): 225 15 II'I'D IIBD I910- ISSI} \"5U IITD I!\" II" I!!! I551 183-! I873 FIGURE I FIGURE: Nara: Real Standard and Poor's Composite Stock Prior: Nora: Real modified DowJoms Industrial Average (solid [rider (solid line 1!) and ex mu rational price [dotted line 9) and 2.1: pm: rational prior. (dotted line p'). [a} If at the point where the 3) curve and the p" curve cross in 1916 the value of the S&P index was 130, the dividend amount was 5.5, and the dividend growth rate was 3%,!year, what was the required rate of return on the SEEP index in 1916 if the Gordon Growth model holds? {b} Given your calculation in part 1a above and assuming that the change in index value (19*) seen between 1916: and 1930 was driven solely by changes in the dividend amount, use the graph to estimate the minimum and maximum dividend paid during this time. {c} The S&P index measures the value of the average dividend stream in \"corporate America.\" Given what you know about how managers view changing dividend payouts, is the result you obtained in part 1b consistent with a change in business flmdamentals or a change in investor sentiment? Briey explain