What is the present value of stock in a company

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3. What is the Present Value of stock in a company that is going to make a one-time special dividend payment of $10 tomorrow and then pay a $5 dividend every year (first payment of $5 in exactly one year) if the interest rate is 10%?

4. Suppose that you are trying to put a net present discounted value on the NxtBgTng. The company is going to lose $20 million this year, lose $11 million next year, zero in two years, but then earn $12.10 million every year after (first coming three years from now). If the interest rate is 10%, what is the value of NxtBgTng?

 

Reference no: EM13715534

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