Question
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
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 = $3.25, DIV2 = $5, and DIV3 = $2.25,DIV4 = $3.75,DIV5 = $2.5,DIV6 = $2.5. What is the expected stock price in year 3 if the discount rate is 11%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) The answer is not 5.34
please find stock prince in 3 years?
and
What is the price an investor is willing to spend on the stock if the investor plans to hold the stock for three years?
please answer both questions
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