le 12 i Cost of Capital and Valuation Basics 5 E12-32. Estimating Stock Value Using Dividend Discount Model with Constant Perpetuity was $62.50. Assume that Kellogg's cost of equity capital is 6.4%. Kelloge pays $2.28 in annual per share dividends to its common stockholders, and its recent stock price Required a. Estimate Kellogg's stock price using the dividend discount model with constant perpetuity. b. Compare the estimate obtained in part a with Kellogg's observed price. What does the difference between these amounts imply about Kellogg's future growth? in Start Value Ilsing Dividend Discount Model with increasing Perpetuity mon stockholders, and its recent stock price