Question
Problem 7-30 Nonconstant Growth (LO2) Planned Obsolescence has a product that will be in vogue for three years, at which point the firm will close
Problem 7-30 Nonconstant Growth (LO2)
| Planned Obsolescence has a product that will be in vogue for three years, at which point the firm will close up shop and liquidate the assets. As a result, forecast dividends are DIV1 = $6, DIV2 = $19, and DIV3 = $15. What is the stock price if the discount rate is 17.42%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Stock price | $ |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
