Jack Hammer invests in a stock that will pay dividends of $3.08 at the end of the first year; $3.46 at the end of the second year; and $3.84 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 $58.
What is the present value of all future benefits if a discount rate of 8 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.)
Dividened $3.08 Present value?
Dividened 3.46 Present value?
Dividened 3.84 Present value?
Dividened 58.00 Present value?
Total?