a. What is sis value if the previous dividend was D2=$1.50 and imvestors expect dividends to grow ot a constant annual rate of (1) - 5%, (2) 0%, (3) 2%, of (4) 5%. Do not round intermediate calculations. Round your answers to the nearest cent. (1) 5 (2) 5 (3) 5 (4) 5 b. Using data from part 3, what would the Gordon (constant growth) model value be if the required rate of retum was 8% and the expected growth rate was (1) 8% or (2) 12% ? Reund vour answers to the nearest cent, if the value is undefined, enter N/A. (1) 5 (2) 3 Are these ressonable results? 1. These resuls show that the formula makes sente if the required rate of retum is equal to or greater than the expected gromth rate. 11. These results show that the formula does not make serse if the expected growth rate is equal to or less than the required rato of return. III. These results stiow that the formula does not make sense if the required rate of return is equal to or less than the expected growth rate. IV. These results shew that the formula does not make sense if the required rate of return is equal to or greater then the expected growth rate. V. These resuits show that the formula makes sense if the required rate of return is equal to or less than the expected grumth rate. 6. Is it reasensbie to think that a conwant growth stock could have g>p, ? 1. It is not reasonabie for a finit to grow cven for a short period of time at a rate higher than its required retum. it. It is not reasonable for a firm to grow indefictely at a rate lower than as requied return. Iif it is not resconable for a firm te grow insefinately at a rale equal to its reculred return. FV. It is not ressonable for a firm to grow indefiniteiy at a rase higher than its reguired return. V. It is reasonable for a firm to grow indefinitely of a rate higher than its required return