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View Full Version : Accounting mindblower


dawgpownd
Dec 15, 2008, 02:09 PM
I invest in stock that will pay dividends of $2.00 end of the first year, $2.20 the second and $2.40 the third. Also, I believe that the stock will sell for $33 dollars at the end of the third year. What is the present value of all future benefits if a discount rate of 11 percent is applied?

codyman144
Dec 16, 2008, 10:56 PM
Discount all the future payments at .11 to the power of the year