Present Value of $1 Discount Rate

Present Value of an Annuity of $1 Discount Rate

Periods

8%

10%

8%

10%

5

0.6806

0.6209

3.9927

3.7908

7

0.5835

0.5132

5.2064

4.8684

9

0.5002

0.4241

6.2469

5.7590

A particular common stock has an annual cash dividend of $4 per share and is predicted to have a market value of $60 per share 5 years from now. Assuming a discount rate of 10%, a fair market price for the stock today is:

$40.00

$52.41

$75.16

$112.42

FI'HIBI'I'I'. Valua af :1 Pralant ti'alua at an Ann uity af Dlaauunt Ftata i1 Dhaaunt Ftata Parldds 5% 15% 555 15% 5 5.5555 5.5255 3.552? 5.?555 T 5.5555 5.5132 5.2554 4.5554 5.5552 5.4241 5.2455 5.?555 A particular ddmmdn stuck. has an annual cash dividend df $4 par share and is pradidtad ta have a market value at $55 per share 5 years frdm ndw. Assuming a discount rate df 15%r a fair market price far the Eta-alt tuzidaji.r is: $45.55 $52.41 $5.15 $1 12.42