Sommerfield Mining Companys reserves are being depleted, so its sales are falling. As a result, the companys earnings and dividends are declining at the constant rate of 3 percent per year. If D ₀ = $4.00 and r _s = 11%, what is the value of Sommerfield Minings stock?

a.$48.50

b.$27.71

c.$29.43

d.$50.00

e.$28.57