What is the present value of all dividends? 0+ decimals Submit Part 2 If you expect to receive the $2 every quarter for exactly 2 years and nothing thereafter, what is the present value of those cash flows?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.12: Uneven, Or Irregular, Cash Flows
Problem 3ST
Question

Please do both part

Intro
The preferred stock of General Motors pays a dividend of $2 every quarter. The
appropriate discount rate is 3% per quarter.
Part 1
What is the present value of all dividends?
0+ decimals
Submit
Part 2
If you expect to receive the $2 every quarter for exactly 2 years and nothing
thereafter, what is the present value of those cash flows?
1+ decimals
Submit
Transcribed Image Text:Intro The preferred stock of General Motors pays a dividend of $2 every quarter. The appropriate discount rate is 3% per quarter. Part 1 What is the present value of all dividends? 0+ decimals Submit Part 2 If you expect to receive the $2 every quarter for exactly 2 years and nothing thereafter, what is the present value of those cash flows? 1+ decimals Submit
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