Answer to Question #222389 in Finance for walcottb2k

Question #222389

As a prospective share holder, you are offered a project that will pay you an income of #8000 in 5years time at 13% rate of discount. What is the present value your future dividend?


1
Expert's answer
2021-08-03T11:52:10-0400

The given information:

Future dividend value: $8,000, time period: 5 years, interest rate: 13% annually

Now the value of dividends at the present period is as follows:

Present value of dividends

Hence the present value of the dividend is $ 4,342.079488

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