JUST 8-11 PLS (b) $40, (c) $50, and (d) $70 (assume the market is...
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JUST 8-11 PLS
(b) $40, (c) $50, and (d) $70 (assume the market is in equilibrium with the required return equal to the expected return)? 8-11 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 D, = $6 and r = 14%, what is the estimated value of Brushy Mountain's stock? 0
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