Question
Constant Growth Valuation Declining Growth: Montana Mountain Mining Corporations (MMMC) ore reserves are being depleted. As a result, the companys earnings and dividends are declining
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Constant Growth Valuation Declining Growth: Montana Mountain Mining Corporations (MMMC) ore reserves are being depleted. As a result, the companys earnings and dividends are declining at a rate of 5% per year. MMMCs required rate of return on its stock is 15% and its most recent dividend was $5. What is the intrinsic value of MMMCs stock?
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Financial Management
Authors: Geoffrey Knott
4th Edition
1403903824, 9781403903822
