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Module 6 Homework Search this course X EB eBook Problem Walk Through Investors require an 8% rate of return on Mather Company's stock (le, -8%).

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Module 6 Homework Search this course X EB eBook Problem Walk Through Investors require an 8% rate of return on Mather Company's stock (le, -8%). a. What is its value if the previous dividend was De - $3.25 and investors expect dividends to grow at a constant annual rate of (1) -3%, (2) 0%, (3) 4%, or (4) 5%? Do not round intermediate calculations. Round your answers to the nearest cent. A (1) $ (3) $ (4) $ b. Using data from part a, what would the Gordon (constant growth) model value be if the required rate of return was and the expected growth rate was (1) 1% or (2) 12%7 Round your answers to the nearest cont. If the value is undefined, enter N/A (2) N 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. 1. These results show that the formula does not make sense if the required rate of return 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 Select c. Is it reasonable to think that a constant growth stock could have

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