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    dawgpownd's Avatar
    dawgpownd Posts: 1, Reputation: 1
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    #1

    Dec 15, 2008, 02:09 PM
    Accounting mindblower
    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's Avatar
    codyman144 Posts: 544, Reputation: 31
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    #2

    Dec 16, 2008, 10:56 PM

    Discount all the future payments at .11 to the power of the year
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