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Investors require an 8% rate of return on Mather Company's stock (i.e., rs = 8%). a. What is its value if the previous dividend was

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Investors require an 8% rate of return on Mather Company's stock (i.e., rs = 8%). 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) -3%, (2) 0%, (3) 2%, or (4) 5%? Do not round intermediate calculations. Round your answers to the nearest cent. (1) $ (2) $ 33.95 (2) $ 43.75 (3) $ (4) $ 122.50 b. Using data from part , 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) $ 72.10 -98.00

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