eBook Print Question 4 Partially correct Mark 1.00 out of 2.00 PF question Edit Question Estimating Stock Value Using Dividend Discount Model with Constant Perpetuity Kellogg pays $2.00 in annual per share dividends to its common stockholders, and its recent stock price was $82.50. Assume that Kellogg's cost of equity capital is 5.0%. Support a. Estimate Kellogg's stock price using the dividend discount model with constant perpetuity $ 40 b. Compare the estimate obtained in part a with Kellogg's $82.50 price. What does the difference between these amounts imply about Kellogg's future growth? The estimated price is substantially lower than its recent market price of $82.50. This means that the market participants expect Kellogg to exhibit positive future growth and to increase its dividend per share beyond the current $2.00 The estimated price is substantially higher than its recent market price of $82.50. This means that the market participants expect Kellogg to exhibit positive future growth and to increase its dividend per share beyond the current $2.00 . The estimated price is substantially lower than its recent market price of $82.50. This means that the market participants expect Kellogg to exhibit negative future growth and to decrease its dividend per share beyond the current $2.00.X The estimated price is substantially higher than its recent market price of $82.50. This means that the market participants expect Kellogg to exhibit negative future growth and to decrease its dividend per share beyond the current $2.00