Question: Jack Hammer invests in a stock that will pay dividends of $3.02 at the end of the first year, $3.34 at the end of the

 Jack Hammer invests in a stock that will pay dividends of

Jack Hammer invests in a stock that will pay dividends of $3.02 at the end of the first year, $3.34 at the end of the second year; and $3.66 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 $52. What is the present value of all future benefits if a discount rate of 9 percent is applied? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Dividend Present Value 3.02 3.34 3.66 52.00 Total 0.00

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