Lakeside Sheet Metal Is Downsizing and Plans on Completely Closing

question 89

Multiple Choice

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