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Martell Mining Companys ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are
Martell Mining Companys ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the companys earnings and dividends are declining at the constant rate of 5% per year. If current dividend is $5 and required rate of return 26.00%, what is the value of Martell Minings stock?
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