You own shares of Cullumber DVD Company and are interested in selling them. With so many people downloading music these days, sales, profits, and dividends at Cullumber have been declining 8 percent per year. The firm just paid a dividend of $1.50 per share. The required rate of return for a stock this risky is 15 percent. If dividends are expected to decline at 8 percent per year, what is a share of the stock worth today? (Round answer to 2 decimal places, e.g. 15.20.)

    As per DDM
    Price = novel dividend* (1 + enlargement trounce )/(consume of equity – enlargement trounce)
    Price = 1.5 * (1+-0.08) / (0.15 – -0.08)
    Price = 6