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?
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