Declining Products Corporation produces goods that are very mature in their product life cycles. Declining Products is expected to pay a dividend in year 1 of $1.51, a dividend of $1.41 in year 2, and a dividend of $1.36 in year 3. After year 3, dividends are expected to decline at a rate of 2% per year. An appropriate required rate of return for the stock is 8%.
What should the stock be worth after three years? (Round your answer to 4 decimal places.)
Stock price