Present Value of $1 Discount Rate Present Value of an Annuity of $1 Discount Rate
Periods8%10%8%10%50.68060.62093.99273.790870.58350.51325.20644.868490.50020.42416.24695.7590
A particular common stock has an annual cash dividend of $4 per share and is predicted to have a market value of $60 per share 5 years from now. Assuming a discount rate of 10%, a fair market price for the stock today is:
$40.00
$52.41
$75.16
$112.42