Question: Mining has seen its business slowly wind down. It recently paid a dividend of $1.80 per share (D0), but analysts expect the dividend to decrease

Mining has seen its business slowly wind down. It recently paid a dividend of $1.80 per share (D0), but analysts expect the dividend to decrease by 6% per year. The risk-free rate is 4.0% and the market risk premium is 5.0%. If the company beta is 0.8 and the market is in equilibrium, what is the value of its stock?

$12.09

$11.79

$10.90

$16.04

$13.97

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