1. A drilling company reserves are depleting. Production is falling as are sales, costs are rising as production becomes more difficult, and earnings are expected to decline by 9% per year into perpetuity. The firm just paid a $10 dividend and the cost of equity is 6.5%. What is the value of the stock?

		$140.00
		$0.00, as the estimated value was negative
		$58.71
		$64.52