Barney Smith invests in a stock that will pay dividends of $3.00 at the end of the

Question:

Barney Smith invests in a stock that will pay dividends of $3.00 at the end of the first year, $3.30 at the end of the second year, and $3.60 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 $50. What is the present value of all future benefits if a discount rate of 11 percent is applied? (Round all values to two places to the right of the decimal point.)

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...