You are considering purchasing the stock of a company that is in decline. The recently announced EPS was $4.25, and you expect the EPS to decline at 1.50% per year into the future. Based on these assumptions, if you require a return of 12%, use the Gordon Growth Model to estimate what you should pay for this stock. You are considering purchasing the stock of a company that is in decline. The recently announced EPS was $4.25, and you expect the EPS to decline at 1.50% per year into the future. Based on these assumptions, if you require a return of 12%, use the Gordon Growth Model to estimate what you should pay for this stock.