| Present Value Jack Hammer invests in a stock that will pay dividents of 2.00 at the end of the first yr; 2.20 @ the end of the 2nd yr; 2.40 @ the end of the 3rd yr. Also he believes that at the end of the 3rd yr he will be able to seel the stock for $33.00. What is the present valur of all future benefits if a discount rate is applied? |