Question: 12-33. Estimating Stock Value Using Dividend Discount Model with Increasing Perpetuity Kellogg pays $2.28 in annual per share dividends to its common stockholders, and its

12-33. Estimating Stock Value Using Dividend Discount Model with Increasing Perpetuity

12-33. Estimating Stock Value Using Dividend Discount Model with Increasing Perpetuity Kellogg pays $2.28 in annual per share dividends to its common stockholders, and its recent stock price was $62.50. Assume that Kellogg's cost of equity capital is 6.4%. Required Estimate Kellogg's expected growth rate based on its recent stock price using the dividend discount model with increasing perpetuity

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