HOMEOWRK HELP?? nEED formula for this stock question?

You are considering an investment in a firm that is expected to pay annual dividends of $1.45 per year for the next 14 years. Assuming a required rate of return of 15 percent, how much are these shares worth now assuming a tax rate of 20 AND 40%?
If you could pls tell me the formula either by hand or excel formula function then i can figure out the rest..thank you

Assuming a calculation for NPV (Net Present Value)
The cash flow is =$1.45 for 14 years.
You want a return of 15%
The basic calculation using excels NPV function = $8.30
If you want to calculate in tax of 20% $1.45*.80=$1.16=$6.64
Tax of 40%= 1.45*.60=.87= $4.98

This is assuming the constant $1.45. In Excel you can type =and then choose NPV and plug in 15% to rate and the figure (1.45, 1.16 or .87) into the periods of which there are 14.

Try this...

http://www.geocities.com/twong18

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