Investors require an $8\%$ rate of return on Mather Company$$s stock $($i$.$e$.,).$

$$What is its value if the previous dividend was $$1\mathrm{.}25$ and investors expect dividends to grow at a constant annual rate of $(1)2\%,(2)0\%,(3)3\%,$ or $(4)5\%?$

$$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 $(2)12\%?$ Are these reasonable results? Explain.

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