Continue growing at the historic rate for foreseeable future

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General Cereal common stock dividends have been growing at an annual rate of 6 percent per year over the past 10 years. Current dividends are $2 per share. What is the current value of a share of this stock to an investor who requires a 11 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 7 percent per year.

$

The dividend growth rate is expected to decrease to 5 percent per year.

$

Reference no: EM132030387

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