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Calamity Mining Company s reserves of ore are being depleted, and its costs of recovering a declining quantity of ore are rising each year. As

Calamity Mining Companys reserves of ore are being depleted, and its costs of
recovering a declining quantity of ore are rising each year. As a result, the companys
earnings are declining at the rate of 10 percent per year. If the dividend per share that is
about to be paid is $5 and the required rate of return is 14 percent, what is the value of the
firms stock?

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