A particular common stock has an annual cash dividend of 4


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

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Finance Basics: A particular common stock has an annual cash dividend of 4
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