29.

Planned Obsolescence has a product that will be in vogue for six years, at which point the firm will close up shop and liquidate the assets. As a result, forecast dividends are DIV₁ = $2, DIV₂ = $4.25, and DIV₃ = $1.75,DIV₄ = $4.25,DIV₅ = $4.25,DIV₆ = $4.75. What is the expected stock price in year 3 if the discount rate is 9.5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock price in year 3

$

What is the price an investor is willing to spend on the stock if the investor plans to hold the stock for three years?

Today's stock price

$