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Planned Obsolescence has a product that will be in vogue for six years, at which...

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Finance

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 = $1, and DIV3 = $4.5,DIV4 = $4.75,DIV5 = $1.5,DIV6 = $1.5. What is the expected stock price in year 3 if the discount rate is 13%? (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 $

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