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eiffabat

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  • November 19, 2022 at 1:23 am #671832
    23dfe556f1671d03d4dc9ba0f40b7632d7c1b1eed04c72951696f59b64a5359d 80eiffabat
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    Hi sir, I’ve encountered the same problem. If I use the dividend valuation method, to discount 124390 and 10000 to year 0, do we use 8% rate? If I use 8% rate, then my answer will be like this :

    pv = (124390*0.857) + (10000*0.857)
    = $115,172

    The answer given is $115,740. Does my answer differ from the actual answer due to rounding?

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