A stock is expected to pay a year-end dividend of $2.00 a share (D1 = $2.00). The dividend

A stock is expected to pay a year-end dividend of $2.00 a share (D1 = $2.00).  The dividend is expected to decline at a constant rate of 5% per year (g = -5%). The company’s expected and required rate of return is 15%.  Which of the following statements is CORRECT?