Marginal Mining Ltd $($MML$)$ is a company in long$-$term decline. It has just paid a dividend of $$6\mathrm{.}00$ per share. The dividend in one year$$s time is expected to be $1\%$ lower and thereafter will decline by $5\%$ every year. The required rate of return on the shares is $11\mathrm{.}5\%$ pa$.$

Using the dividend growth model, the estimated value of an MML share is closest to:

$($A$)$ $$34\mathrm{.}20$

$($B$)$ $$36\mathrm{.}00$

$($C$)$ $$36\mathrm{.}36$

$($D$)$ The model can$$t be used because the forecast growth rate is negative.

Group of answer choices

D

B

A

C