Investors euren 8% rate of return on Levine narystocki... -0%). a. What is its value if the previous dividend was Do - $3.50 and investors expect dividends to grow at a constant annual rate of (1) -6%. (2) 0% (3) 2% or (4) 6%? Do not found intermediate calculations. Round your answers to the nearest cent. (1) (2) (3) b. Uning data from parts, what would the Gordon (constant growth) model Vale be if the required rate of return was 15% and the expected growth rate was (1) 15% (2) 20% these reasonable results 1. These results show that the formula makes sense if the required rate of retum is equal to or greater than the expected growth rate. II. 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 11. These results show 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 show that the formule does not make sense if the required rate of retum is equal to or greater than the expected growth rate. These results show that the formula makes sense if the required rate of return is equal to or less than the expected growth rate c. Is it remonable to think that a constant growth stock could have g> 1. It is not reasonable for a firm to grow even for a short penod of time at a rate higher than its required retum II. It is not reasonable for a firm to grow indefinitely at a rate lower than its required retum. III. It is not reasonable for a firm to grow indefinitely at a rate equal to its required return 1V. It is not reasonable for firm to grow indefinitely trate higher than it required return Vitis reasonable for a firm to grow indefinitely at a rate higher than its required return Cselect