As a result the companys earnings and dividends are


VALUATION OF A DECLINING GROWTH STOCK Martell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising.

As a result, the company's earnings and dividends are declining at the constant rate of 4.75% per year.

If D0 = $6.5 and rs = 14.75%, what is the value of Martell Mining's stock? Round to TWO decimal places.

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Financial Management: As a result the companys earnings and dividends are
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