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need all parts of this problem to be solved require a 7% rate of return on Mather Company's stock (i.e., fs=7% ). round intermediate calculations.

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require a 7% rate of return on Mather Company's stock (i.e., fs=7% ). round intermediate calculations. Round your answers to the nearest cent. (1) s (3) 5 (4) 5 b. Using data from part a, what would the Gordon (constant grown) model value be if the required rate of return was as and the expected growth rate was (1) sw ar (2) 12% ? Round vour answers to the nearest cent, if the value is undefined, enter N/A. (1) s (2) 3 Are these reasonabie results? 1. These results show that the formula makes sense if the required rate of retum is equal to or less than the expected growth rate. 11. These results show that the formulo makes sense if the required rate of retum la equal to or greater than the expected grenth rate. III. These refults show that the formula does not make stnve if the expected gronth rate is equal to or lest than the requirod rate of return. IV. These results show that the formula does not make sense if the required rate of returh is equal to or less than the expected growth rate. V. These results show that the formuta does not make sense if the requiles rate of return is equal to or greater than the expected growth rate. C. Is it reaspobie to think thet a contant gromth stock could have g>n ? 1. It is not ressonable for n firm to grow indefinitely ot a rate higher than its required returm. 11. It is reasonabie for a firm to grow indefhitely at a rate higher than its required return. III. It is not reasonable for a firm to grow even for a short period of time at a rate Noher than its required retum. IV. It is not reasonabie for a firm to grow indefinitely at a rate foner than its required return: V. It is not reasonable for a firm to grow indefinitely at a rate equal to its required return

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