8. Maxwell Mining Company's ore reserves are being depleted, so its sales are falling. Also,...
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8. Maxwell 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 9% per year. If D0 = $2 and rs = 15%, what is the value of Maxwell Mining's stock? Round your answer to the nearest cent.
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9.
A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D1 = $2.75), and it should continue to grow at a constant rate of 4% a year. If its required return is 13%, what is the stock's expected price 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
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