15. O 16. 8-11: Valuing Common Stocks with the Dividend Growth Model Problem 8-16 Constant Growth Stock Valuation 17. 18. Investors require a 16% rate of return on Brooks Sisters' stock (rs - 16%). 19 20. a. What would the value of Brooks's stock be if the previous dividend was Do - $2.5 and if investors expect dividends to grow at a constant compound annual rate of (1) - 7%, (2) 0%, (3) 4%, or (4) 11%? Round your answers to the nearest cent. 1. $ 21 2. $ 3. $ 4. $ b. Using data from part a, calculate the Gordon (constant growth) model's value for Brooks Sisters's stock if the required rate of return is 16% and the expected growth rate is (1) 16% or (2) 19%? Are these reasonable results? Explain. 1. Select Tool 2. Select v C. Is it reasonable to expect that a constant growth stock would have gro? -Select- Check My Work 40 11:27 PM 10/19/2020 earch o (hp 90 Insert DSC backspace