nvestors require a 12% rate of return on Brooks Sisters' stock (rs= 12%).

1. What would the estimated value of Brooks' stock be if the previous dividend was D0= $1.00 and if investors expect dividends to grow at a constant annual rate of (1) - 4%, (2) 0%, (3) 4%, or (4) 12%? Do not round intermediate calculations. Round your answers to the nearest cent.
2. $
3. $
4. $
5. $
6. Using data from Part a, what is the constant growth model's estimated value for Brooks Sisters' stock if the required rate of return is 12% and the expected growth rate is (1) 12% or (2) 13%? Are these reasonable results? Round your answers to the nearest cent. Use a minus sign to enter negative values, if any. If your answer is zero, enter "0".
7. : $
8. -Select-
9. Yes, it is a reasonable result.
10. No, it is not a reasonable result, because in this case the value of stock is undefined.
11. No, it is not a reasonable result, because in this case the value of stock is negative, which is nonsense.
12. Item 6
15. : $
16. -Select-
17. Yes, it is a reasonable result.
18. No, it is not a reasonable result, because in this case the value of stock is undefined.
19. No, it is not a reasonable result, because in this case the value of stock is negative, which is nonsense.
20. Item 8
22. Is it reasonable to expect that a constant growth stock would have gL> rs?
23. -Select-
24. Yes
25. No