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 5% per year. if d0 = $4 and rs = 13%, what is the value of maxwell mining's stock? round your answer to the nearest cent.

$21.11

Explanation:

Given that,

Current dividend, D0 = $4

Rate of return, rs = 13%

Here,

Current price of the stock =

Growth rate, g = 5%

               = $21.11

Therefore, the value of stock is $21.11

Teddy bears = t = 18
# boxes of candy = c = 72

Four times the number of teddy bears is how much candy they sold:
4t = c
11t + 5c = 558

So we will substitute the value of c into the second expression and solve for a numerical value of t

11t + 5(4t) = 558
11t + 20t = 558
31t = 558
t = 18

c = 4t
c = 4(18)
c = 72

Check the math:
11(18) + 5(72)
= 198 + 360
= 558

Please let me know if you have any questions