St. John Medical, a surgical equipment manufacturer, has been hit hard by increased competition. Analysts predict that earnings and dividends will decline at a rate of 5% annually into the foreseeable future. If the firm's last dividend (DO) was $2.00 and the investors' required rate of return is 15 percent, what will be the company's stock price in three years? The constant growth model applies to negative growth as well as positive growth. E(PO) = DO ~ [1 +E(g)] R(Re) - E(g) = E(PO) = E(P1) = E(P2) = E(P3)=