General Cereal common stock dividends have been growing at an annual rate of 7 percent per year

Question:

General Cereal dividends have been growing at an annual rate of 7 percent per year over the past 10 years. Current dividends are $1.70 per share. What is the current value of a share of this stock to an investor who requires a 12 percent rate of return if the following conditions exist?
a. Dividends are expected to continue growing at the historic rate for the foreseeable future.
b. The growth rate is expected to increase to 9 percent per year.
c. The growth rate is expected to decrease to 6.5 percent per year.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...