9-12 VALUATION OF A CONSTANT GROWTH STOCK Investors require a 15% rate of return on Levine Company's stock el, 15%). What is its value if the previous dividend was D. $2 and investors expect dividends to grow at a constant annual rate of (1) S%, (2) 0%, (3) 5%, or (4) 10%? b. Using data from part a, what would the Gordon (constant growth) model value be if the required rate of return was 15% and the expected growth rate was (1) 15% or (2) 20%7 Are these reasonable results? Explain Is it reasonable to think that a constant growth stock could haves,? Why or why not