E BOOK Investors require a rate of retum on Levine company's stock in.) What is its value of the previous dividend was D = $3.50 and investors expect dividends to grow at a constant annual rate of (1) 5 (2) 0%, (3) 34, or (4) 67 Do not round Intermediate calculations, Round your answers to the nearest cent (1) (2) (3) b. Dung data from porta, 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% 1. These results show that the formula does not make sense of the expected growth rate is equal to or less than the required rate of return 11. These results show that the formula does not make sense of the required rate of retum is equal to or less than the expected growth rate 111. These results show that the formula does not make sense if the required rate of return is equal to or greater than the expected growth rate IV. These results show that the formula makes sense of the required rate of retum is equal to or less than the expected growth rate V. These results show that the formula makes sense of the required rate of return is equal to or greater than the expected growth rate. Select csit reasonable to think that a constant growth stock could have >> It is not reasonable for firm to grow indefinitely at a rate lower than its required return IL. It is not reasonable for a firm to grow indefinitely at a rate equal to its required retum Ill. It is not reasonable for a firm to grow indefinitely at a rate higher than its required return IV. It is reasonable for a firm to grow indefinitely at a rate higher than its required return With otronsonable for anim to grow even for short period of time at a rate higher than its required return