Problem:
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 9% per year. If D0 = $2 and rs = 13%,
Required:
Question: What is the value of Martell Mining's stock?
Note: Provide support for rationale.