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Estimating Stock Value Using Dividend Discount Model with Constant Perpetuity Kellogg pays $1.80 in annual per share dividends to its common stockholders, and its recent
Estimating Stock Value Using Dividend Discount Model with Constant Perpetuity
Kellogg pays $1.80 in annual per share dividends to its common stockholders, and its recent stock price was $82.50. Assume that Kelloggs cost of equity capital is 5.0%.
a. Estimate Kelloggs stock price using the dividend discount model with constant perpetuity.
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