Lakeside Sheet Metal is downsizing and plans on completely closing three years from now. The firm's liquidation plan calls for annual dividends of $3, $6, and $36 over the next three years, respectively. What is the current value of this stock given a discount rate of 14 percent?
A)$26.94
B)$27.16
C)$28.46
D)$31.55
E)$36.29

Question

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The Answer of Lakeside Sheet Metal is downsizing and plans on completely closing three years from now. The firm's liquidation plan calls for annual dividends of $3, $6, and $36 over the next three years, respectively. What is the current value of this stock given a discount rate of 14 percent?
A)$26.94
B)$27.16
C)$28.46
D)$31.55
E)$36.29

Lakeside Sheet Metal Is Downsizing and Plans on Completely Closing