Companys ore reserves are berig depleted so ts sales are tal

Company\'s ore reserves are berig depleted, so ts sales are taling. Also, because its p± getting deeper each yeat, itscosts are nsang. As ?result, -wy\'s earrings and drvderds arc inn rate of 9% per yeac De-13 and ri-lis, what is the v? e of Manwel Penng\'s steck, Round your answer tothe nearest c .

Solution

value of the stock

=(D0*(1+g))/(r-g)

=(3*(1-9%))/(11%-(-9%))

=13.65

the above is answer..