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The Mini-DV Tape Production Company is facing decreased sales due to the continual trend toward the use of flash storage devices to capture videos. Based

The Mini-DV Tape Production Company is facing decreased sales due to the continual trend toward the use of flash storage devices to capture videos. Based on the most recent long-term earnings forecasts, it is anticipated that dividends will decline at a rate of 10% annually, forever. The firm just paid a dividend of $4.25 and the required return on the stock is 15%. a) At what price should the stock sell for today? b) At what price should the stock sell for 4 years from today? c) Explain why an investor would still be interested in purchasing the stock today if they know the stock price will only decrease over time?

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