General Cereal common stock dividends have been growing at an annual rate of 7 percent...
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General Cereal common stock dividends have been growing at an annual rate of 7 percent per year over the past 10 years. Current dividends are $1.4 per share. What is the current value of a share of this stock to an investor who requires a 10 percent rate of return if the following conditions exist? Round your answers to the nearest cent.
Dividends are expected to continue growing at the historic rate for the foreseeable future. $
The dividend growth rate is expected to increase to 8 percent per year. $
The dividend growth rate is expected to decrease to 6 percent per year. $
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