Declining Growth Stock Valuation Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 8.70% per year. If D0 = $3.24 and rs = 13.75%, what is the value of Brushy Mountain's stock?

Answer is either:

$12.52

$15.28

$16.08

$13.18

or

$12.91