Question: Given a lump sum in the future, the more frequent the compounding the greater the present value. greater the effective annual interest rate. greater the

Given a lump sum in the future, the more frequent the compounding the

	greater the present value.
	greater the effective annual interest rate.
	greater the future value.
	lesser the future value.
	None of the above

MacroDense Ltd. currently does not pay a dividend. There is a general consensus among analysts that the firm will start paying dividends in five years. The first dividend is predicted to be $1.00 and future dividends will grow at a rate of 6% per year after that. You require a 10% rate of return for assets of this risk. What is your valuation of MacroDense stock?

	$17.08
	$25.00
	$15.52
	$23.45
	None of the above

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