Martell Mining Company’s ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company’s earnings and dividends are declining at the constant rate of 5% per year. If D0 5 and rs 15%, what is the value of Martell Mining’s stock?

the value of Martell Mining’s stock is 23.75

Explanation:

given data

constant growth rate g = 5% per year

D0 =  5

rs = 15%

solution

we get here value of Martell Mining stock that is

value of  stock  =     ......................1

put here value and we get

value of  stock  =    

value of  stock  =  23.75

so here the value of Martell Mining’s stock is 23.75

answer; tech (a) is correct;

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it