Question: Jack Hammer invests in a stock that will pay dividends of $3.14 at the end of the first year; $3.58 at the end of the

Jack Hammer invests in a stock that will pay dividends of $3.14 at the end of the first year; $3.58 at the end of the second year; and $4.02 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 $64.

What is the present value of all future benefits if a discount rate of 14 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
$3.14
3.58
4.02
64.00
Total	$0.00

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