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Planned Obsolescence has a product that will be in vogue for 3 years, at which point...

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 DIV1 = $9.50, DIV2 = $10.00, and DIV3 = $25.50. What is the stock price if the discount rate is 12%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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YEAR 1 2 Cash flow $9.50 $10.00 $25.50 , @ 12% 0.8929 0.7972 0.7118 discounted cash flows $8.48 $7.97 $18.15 $34.60 Stock pri

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