Kellogg pays $2.28 in annual per-share dividends to its common stockholders, and its recent stock price was $62.50. Assume that Kelloggs cost of equity capital is 6.4%.

Further, assume the company is expected to pay $2.28 in annual dividends to its common shareholders in the future, and the expected growth rate in dividends is 2.7%. (i) Compute Kelloggs intrinsic value; (ii) Compute Kelloggs intrinsic value to reflect increases and decreases of 0.5% in both (1) cost of equity capital and (2) the expected growth rate in dividends.