Problem:
Gomer Pyle invests in a stock that will pay dividends of $1.60 at the end of the first year, $1.80 at the end of the second year, and $2.00 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 $30.
Required:
Question: What is the present value of all future benefits if a discount rate of 10% is applied?
Note: Please show guided help with steps and answer.