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Session 2:: Cash Future Value
Session 2:: Cash Future Value
N. K. Chidambaran
Corporate Finance
• Suppose a stock currently pays a dividend of $1.10,
which is expected to grow at 40 percent per year for
the next five years.
• What will the dividend be in five years?
FV = PV × (1 + r)t
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Present Value and Discounting
PV $20,000
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Finding the Number of Periods