Question
Assume that an investor expects to receive the following dividends: year 1: $8, years 2-7: $10, and years 11-12: $12. If the investor's discount rate
Assume that an investor expects to receive the following dividends: year 1: $8, years 2-7: $10, and years 11-12: $12. If the investor's discount rate is 5 percent, what is the present value of this dividend stream?Why
A.$91.06
B.$74
C.$62.77
D.$69.66
E.Cannot be determined
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
