Investors require a 6% rate of return on Mather Company's stock (i.e., r_s = 6%).

1. What is its value if the previous dividend was D₀ = $4.00 and investors expect dividends to grow at a constant annual rate of (1) -5%, (2) 0%, (3) 3%, or (4) 5%?

   (1) $ 34.55

   (2) $ 66.67

   (3) $ 137.33

   (4) $ 420 These are correct not understanding part B

2. Using data from part a, what would the Gordon (constant growth) model value be if the required rate of return was 8% and the expected growth rate was (1) 8% or (2) 12%? Round your answers to the nearest cent. If the value is undefined, enter N/A.

   (1) $ NA

   (2) $ ________