General Cereal common stock dividends have been growing at an annual rate of 5 percent per year over the past 10 years. Current dividends are $1.2 per share. What is the current value of a share of this stock to an investor who requires a 12 percent rate of return if the following conditions exist?

Round your answers to the nearest cent.

1.Dividends are expected to continue growing at the historic rate for the foreseeable future. $

2. The dividend growth rate is expected to increase to 8 percent per year. $

3. The dividend growth rate is expected to decrease to 4.5 percent per year.