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%. Estimate Kellogg’s expected growth rate based on its recent stock price using the dividend discount model with increasing perpetuity. Do not round until your final answer. Round answer to two decimal places (ex: 0.02345 = 2.35%).
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%. Estimate Kellogg’s expected growth rate based on its recent stock price using the dividend discount model with increasing perpetuity. Do not round until your final answer. Round answer to two decimal places (ex: 0.02345 = 2.35%).
Chapter12: The Cost Of Capital
Section: Chapter Questions
Problem 5P
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Estimating Stock Value Using
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
Estimate Kellogg’s expected growth rate based on its recent stock price using the dividend discount model with increasing perpetuity.
Do not round until your final answer. Round answer to two decimal places (ex: 0.02345 = 2.35%).
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