John Doe invests in a stock that will pay dividends of $3.18 at the end of the first year; $3.66 at the end of the second year; and $4.14 at the end of the third year. Also, at the end of the third year he believes he will be able to sell the stock for $68. What is the present value of these future benefits if a discount rate of 11 percent is applied? Use Excel to help you with the calculations. (5 marks)
Hint: A table may help.
Answer: