A company's stock is expected to pay a year-end dividend of D₁ = $3.00. The dividend is expected to decline at a rate of 3% a year forever (g = -3%). If the required rate of return is 15%, determine the current price, P₀, for this stock using the constant growth model.

Group of answer choices

$21.54

$16.67.

The constant growth model cannot be used because the growth rate is negative.

$25.00