chp 7 hwk 2 q. 5

Planned Obsolescence has a product that will be in vogue for 3 years, at which point the firm will close up shop and liquidate the assets. As a result, forecast dividends are DIV = $2, DIV2 $2.50, and DIV3 = $18. What is the stock price if the discount rate is 12%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) X Answer is complete but not entirely correct. Stock price $ 18.21

Planned Obsolescence has a product that will be in vogue for 3 years, at which point the firm will close up shop and liquidate the assets. As a result, forecast dividends are \\( \\mathrm{DIV}_{1}=\\$ 2, \\mathrm{DIV}_{2} \\) \\( =\\$ 2.50 \\), and \\( \\mathrm{DIV}_{3}=\\$ 18 \\). What is the stock price if the discount rate is \12 ? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct