Investors require a 6% rate of retum on Mather Company's stock ( i.e.-. r3=6W4). a. Whot is its value if the previous dividend was Dg0=53.25 and investors expect devidends to grbw at a constant annual rate of (1) - 3%, (2) 0\%f, (3) 2%, or (4) 5eli? Do not round intermediate calculations. Ftound your answers to the nearest cent. (1) 4 (2) 5 (3) 8 (4) 5 b. Using data from part a, what would the Gordon (constant growth) model value be if the required rate of return was 8 s and the expected growth rate was (1) 8\% or (2) 12s ? Round your answers to the nearest cent. If the value is undefined, enter N/A : (1) 5 (2) 5 Are these reasonable results? 1. 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. II. These results show that the formula does not make sense if the required rate of retum is equal to or greater than the expected growth rate. III. 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. c. Is it reasonable to think that a constant growth stock could have g>rs ? t. It is nok reavonable for a firm to grow even for a short penod of time at a rate higher than its required return. 11. 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. IV. It is not reasonable for a firm to grow indefinitely at a rate higher than its required return. V. It is reasonable for a firm to grow indefinitely at a rate higher than its required return