An oil companys resources are being depleted and known


An oil company's resources are being depleted and known reserves are becoming scarcer. As a result, the company's earnings and dividends are declining at a rate of 3% each year. The dividend was $5.60 per share during the current year (period 0). In other words, D0 is $5.60. The appropriate discount rate is 11% per year. What is the price per share of the company's common stock, i.e., P0?

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Financial Econometrics: An oil companys resources are being depleted and known
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