Question: Jack Hammer invests in a stock that will pay dividends of $3.05 at the end of the first year; $3.40 at the end of the

Jack Hammer invests in a stock that will pay dividends of $3.05 at the end of the first year; $3.40 at the end of the second year; and $3.75 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 $55. What is the present value of all future benefits if a discount rate of 12 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

$ 3.05

$ 3.40

3.75

55.00

Total $

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