Declining growth stock valuation brushy mountain mining


Declining Growth Stock Valuation 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. If D0 = $4 and rs = 16%, what is the value of Brushy Mountain's stock? Round your answer to the nearest cent.

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Financial Management: Declining growth stock valuation brushy mountain mining
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