a. What is its value if the previous dividend was Du. = $1.50 and investors expect dividends to grow at a constant annual rate of (1) 5%.. {2} 0%, {3) 3%, or {4} 6%? Do not round intermediate calculations. Round your answers to the nearest cent. [1} $ [2} $ [3] $ [4] $ b. Using data from part a, what would the Gordon (oonstant growth) model value be if the required rate of return was 8% and the emected grow'l rate was {1) 8% or [2] 12%? Round your answers to the nearest sent. If the value is undened, enter WA. [11$ [21$ Are these reasonable results? I. 111ese results show that the formula makes sense if the required rate of retum is equal to or greater than the expected growth rate. 11. These results show that the formula does not make sense if the expected growth rate is equal to or less 'lan the required rate of return. III. 111ese results show that the formula does not make sense if the required rate of retum is equal to or less than the expected growth rate. I'v'. 111ese results show that the formula does not make sense if the required rate of retum is equal to or greater than the expected growth rate. V. 111ese results show that the formula makes sense if the required rate of retum is equal to or less than the expected growth rate. -Select- V o. Is it reasonable to think that a oonstant growth shod: oould have g 2: rs? I. It is not reasonable for a firm to grow indenitely at a rate equal to its required retum. II. It is not reasonable for a firm to grow indenitely at a rate higher 'lan its required reIJJrn. III. It is reasonable for a m1 to grow indefiniter at a rate higher than its required retum. I'LI'. It is not reasonable for a firm to grow even for a short period of time at a rate higher than its required retum. V. It is not reasonable for a firm to grow indenitely at a rate lower than its required retum. -Seled:-V