Question: both a and b Estimating Stock Value Using Dividend Discount Model with Constant Perpetuity Kellogg pays $1.76 in annual per share dividends to its common

both a and b Estimating Stock Value Using Dividend Discount Model

both a and b

Estimating Stock Value Using Dividend Discount Model with Constant Perpetuity Kellogg pays $1.76 in annual per share dividends to its common stockholders, and its recent stock price was $58.73. Assume that Kellogg's cost of equity capital is 5.0%. Required Estimate Kellogg s stock price using the dividend discount model with constant perpetuity. Compare the estimate obtained in part a with Kellogg's $58.73 price. What does the difference between these amounts imply about Kellogg's future growth

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