Present value of stock-jack hammer

Reference no: EM13115701

Jack Hammer invests in a stock that will pay dividends of $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. Also he believes that at the end of the third year he will be able to sell the stock for $33.00. What is the present value of all future benefits if a discount rate of 11 percent is applied? (Show each step and round all values to two places to the right of the decimal point.)

Reference no: EM13115701

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