Question: Why is 49.11 wrong? Jack Hammer invests in a stock that will pay dividends of $3.19 at the end of the first year; $3.68 at

Why is 49.11 wrong?

Why is 49.11 wrong? Jack Hammer invests in a stock that will

Jack Hammer invests in a stock that will pay dividends of $3.19 at the end of the first year; $3.68 at the end of the second year, and $4.17 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 $69. What is the present value of these future benefits if a discount rate of 12 percent is applied? Use Appendix B. (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) Present value 2.85 $3.19 $3.68 2.93 $4.17 2.97 $69.00 49.11 Total $ 57.86

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