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Search this Ch 09: End of Chapter Problems Stocks and Their Valuation eBook Problem Walk-Through Investors require an 8% rate of return on Mather Company's stock (ex-96) a. What is its value if the previous dividend was De - 14.00 and Investors expect dividends to grow at a constant annual rate of (1) 7,0) 0%, (3) 4%, or (4) Do not sond intermediate calculations. Round your answers to the nearest cent. (1) $ (2) 5 (3) $ Cays b. Using data from part a, what would the Gordon (constant growth model value be the required rate of return was 8 and the expected growth rate was (1) or (2) 12% Round your answers to the nearest cent. If the value is undefined enter NA (1) (2) Are these reasonable results 1. These results show that the formule does not make sense if the regrerate ofretum is equal to or greater than the expected growth rate II. These results show that the formula makes senset the required rate of return to or less than the expected growth rate II. These results show that the formula makes sense of the required rate of returns out to greater than the expected growth rate. IV. These results show that the formula does not make sense the expected growth rate is equal to or less than the required rate of retum V. These results show that the formula does not make sense of the required rate of retium in equal to or less than the expected growth ratu. Is it reasonable to think that a cortant growth stock could have Type to search o

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