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What is the future value of an initial $700 after 4 years, if I/YR = 4.5%? O $724.21 O $1001.12 $634.27 O $834.76 O $874.77
What is the future value of an initial $700 after 4 years, if I/YR = 4.5%? O $724.21 O $1001.12 $634.27 O $834.76 O $874.77 The only value a stock really has is its ability to generate cash for the shareholder. We have to do is figure out how much all those dividend payments are going to be and discount them back to their present value. All those dividend payments happen in the future. We have to make a few assumptions. First, there're (Select] of dividend payments. Second, we look at the company's history to come up with a growth rate of the [Select] expected to change each year. Finally, we need to know how much we're going to [Select] the value of those future are payments so we can figure out their present value
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