E eBook Problem Walk-Through Investors require an 8% rate of return on Mather Company's stock (1.e. f,8%). a. What is its value if the previous dividend was Ds $3.50 and investors expect dividends to grow at a constant annual rate of (1)-2, (2) 0%, (2) 2%, ar (4) 67 Do not round intermediate calculations. Round your answers to the nearest cent (1) (2) (3) (4) 5 b. Using data from part a, what would the Gordon (constant growth) model value be the required rate of retum was 8% and the expected growth rate was (3) 0 answers to the nearest cent. If the value is undefined, enter N/A. (2) 12% Round your (1) (2)5 Are these reasonable results? 1. These results show that the formula does not make sense if the required rate of retum is equal to or less than the expected growth rate. 11. These results show that the formula does not make sense of the required rate of return is equal to or greater than the expected growth rate 111. These results show that the formula makes sense if the required rate of return is equal to or less than the expected growth rate IV. These results show that the formula makes sense if the required rate of return is equal to or greater than the expected growth rate. V. These results show that the formula does not make sense if the expected growth rate is equal to or less than the required rate of return