Question: Jack Hammer invests in a stock that will pay dividends of $3.09 at the end of the first year; $3.48 at the end of the

Jack Hammer invests in a stock that will pay dividends of $3.09 at the end of the first year; $3.48 at the end of the second year; and $3.87 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 $59.

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.

Dividend	Present Value
$3.09	?
3.48	?
3.87	?
59.00	?
Total

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