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    kk5612's Avatar
    kk5612 Posts: 1, Reputation: 1
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    #1

    May 15, 2007, 12:54 PM
    present value with divended
    How do I figure out the present value of my dividends are 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. The stock will sell for 33.00 at the end of the third year and the discount rate of 11% is applied?

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    bunnyKutty's Avatar
    bunnyKutty Posts: 60, Reputation: 5
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    #2

    May 20, 2007, 07:56 AM
    Cash flows* PV factor@11% Present value
    2* 0.901= 1.8
    2.2 *0.812= 1.79
    2.4* 0.731= 1.75
    30* 0.731= 21.93
    Total present value of future benefits = $27.27
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