You are considering buying shares in Delos Corp. $($the firm that owns the Westworld theme parks$).$ The current dividend is $$2\mathrm{.}00,$ and expected dividend growth is $1\mathrm{.}5\%.$ You have a required return on equities of $12\%.$ How much are you willing to pay for shares of Delos? Use the Gordon growth model.

Now suppose that the news comes out that the robot hosts of Westworld have developed the undesirable habit of murdering the guests at the parks. How will the shares of Delos respond? In which element of the Gordon growth model $($the required return on equities, the expected dividend growth, or the current dividend$)$ will we see the change occur?