The discount rate is 12 percent what is the present value


A firm has just declared that its dividend next year will be $3 per share. That rate of payment will continue for an additional four years, after which the dividends will fall back to their usual $2 per share. The discount rate is 12 percent. What is the present value of all the future dividends?

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Financial Management: The discount rate is 12 percent what is the present value
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