The use of thermal coal to produce electricity is on the way out. Analysts of Yancoal Australia Ltd. (ASX:YAL) in NSW know this, too. While the last annual dividend was $0.363 per share (paid a few days ago), shareholders should have no illusions about the fact that earnings and dividends are on an irreversible downward trend. Shares of YAL currently trade for $2.813. If the cost of capital is 9.1%, what constant rate of decline are shareholders pricing into shares today (assume a constant payout ratio)?

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