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Home / Questions / Jack Hammer invests in a stock that will pay dividends of $3.01 at the end of the first ye

Jack Hammer invests in a stock that will pay dividends of $3.01 at the end of the first ye

Jack Hammer invests in a stock that will pay dividends of $3.01 at the end of the first year; $3.32 at the end of the second year; and $3.63 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 $51.

What is the present value of all future benefits if a discount rate of 8 percent is applied?

 

 

 

Dividend

Present Value

$3.01

 

3.32

 

3.63

 

51.00

 

Total

$0.00

   

Dec 04 2019 View more View Less

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