Assume that an investor expects to receive the following dividends: year 1: $8, years 2-7: $10, and years 11-12: $12. If the investor's discount rate is 5 percent, what is the present value of this dividend stream?
A) $91.06
B) $74
C) $62.77
D) $69.66
E) Cannot be determined
Correct Answer:
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