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?