Question: 3- Jack Hammer invests in a stock that will pay dividends of $3.11 at the end of the first year; $3.52 at the end of

3- Jack Hammer invests in a stock that will pay dividends of $3.11 at the end of the first year; $3.52 at the end of the second year; and $3.93 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 $61.

What is the present value of all future benefits if a discount rate of 11 percent is applied? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

$3.11 at the end of the first year; $3.52 at the end

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