Problem:
Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 4% per year.
Required:
Question: If D0= $6 and rs= 14%, what is the estimated value of Brushy Mountain's stock?
Note: Please provide full description.