Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $33. What is the present value of all future benefits if a discount rate of 11 percent is applied? (Round all values to two places to the right of the decimal point.)© BrainMass Inc. brainmass.com October 9, 2019, 6:28 pm ad1c9bdddf
We use the following formula to calculate the present ...
The solution explains and shows the calculations to arrive at the answer.