Question: Jack Hammer invests in a stock that will pay dividends of $3.08 at the end of the first year; $3.46 at the end of the

Jack Hammer invests in a stock that will pay dividends of $3.08 at the end of the first year; $3.46 at the end of the second year; and $3.84 at the end of the third year. Also at the end of the third year he believes he will be able to sell the stock for $58.

What is the present value of these future benefits if a discount rate of 8 percent is applied? (Use a Financial calculator to arrive at the answers. Round the final answers to 2 decimal places.)

	Present value
$3.08		2.85 Numeric Response 1.Edit Unavailable. 2.85 correct.
$3.46		2.97 Numeric Response 2.Edit Unavailable. 2.97 correct.
$3.84		3.05 Numeric Response 3.Edit Unavailable. 3.05 correct.
$58.00		43.16 Numeric Response 4.Edit Unavailable. 43.16 incorrect.
Total	$	52.03 Numeric Response 5.Edit Unavailable. 52.03 incorrect.

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