General Cereal common stock dividends have been growing at an annual rate of seven percent per year over the past ten years. Current dividend (D0) is $1.70 per share. Calculate 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:
[A] Dividends are expected to continue growing at the historic rate for the foreseeable future.
[B] The dividend growth rate is expected to increase to nine percent per year.
[C] The dividend growth rate is expected to decrease to 6.5 percent per year.