Chapter 4: Net Present Value

Next, apply the perpetuity formula to find the PV of the dividend payments that start at quarter 13 and grow at 0.5 percent each quarter. The dividend payment at quarter 13 is $1.005 (=$1 ( 1.005). Since the perpetuity formula calculates the PV of the payments as of quarter 12, discount that value back 12 quarters to find the value as of today. ................
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