Investors require an 8% rate of return on Mather Company's stock (i.e., r_s = 8%).

1. What is its value if the previous dividend was D₀ = $3.75 and investors expect dividends to grow at a constant annual rate of (1) -2%, (2) 0%, (3) 2%, or (4) 7%? Do not round intermediate calculations. Round your answers to the nearest cent.

   (1) $

   (2) $

   (3) $

   (4) $

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) $

   (2) $