The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference between the required return and dividend growth rate as follows: P = D. If you were analyzing the consumer goods industry, for which kind of company in the industry would the constant growth model work best? Mature companies with relatively predictable earnings All companies O Young companies with unpredictable earnings Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $0.85 at the end of the year. Its dividend is expected to grow at a constant rate of 6.50% per year. If Walter's stock currently trades for $26.00 per share, what is the expected rate of return? 5.87% 6.53% O 6.75% 9.77% Which of the following conditions must hold true for the constant growth valuation formula to be useful and give meaningful results? O The required rate of return, rs, must be greater than the long-run growth rate. The company's growth rate needs to change as the company matures. The company's stock cannot be a zero growth stock