Your grandfather has bought you an investment that gives a dividend of $100 each year, you...

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Your grandfather has bought you an investment that gives a dividend of $100 each year, you will receive the first dividend in one year, and the discount rate is 10%. a) How much is this investment worth today? b) How much is this investment worth today if you receive the first dividend today? Your grandfather has bought you an investment that gives a dividend of $100 each year, you will receive the first dividend in one year, and the discount rate is 10%. a) How much is this investment worth today? b) How much is this investment worth today if you receive the first dividend today?

Answer rating: 100% (QA)

a To calculate the present value of the investment we can use the formula for the presen... View the full answer