Question: Jack Hammer invests in a stock that will pay dividends of $3.20 at the end of the first year; $3.70 at the end of the

Jack Hammer invests in a stock that will pay dividends of $3.20 at the end of the first year; $3.70 at the end of the second year; and $4.20 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 $70. What is the present value of all future benefits if a discount rate of 13 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
3.20
4.20
3.70
70.00

total

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