Question: Kellogg pays $ 2 . 4 0 in annual per share dividends to its common stockholders, and its recent stock price is $ 7 1

Kellogg pays $

2.40

in annual per share dividends to its common stockholders, and its recent stock price is $

71.24 .

Assume that Kellogg

s cost of equity capital is

6 % .

Estimate Kellogg

s expected growth rate based on its recent stock price using the dividend discount model with increasing perpetuity. Round final answer to two decimal places. HINT: Do not round intermediate calculations.

Answer

1 %

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