Page 67 - CFA - Day 1 & 2 Course Notes
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LOS 6.e: Calculate and interpret the Session Unit 2: The Time Value of Money
future value (FV) and present value (PV)
of a single sum of money, an ordinary
annuity, an annuity due, a perpetuity (PV
only), and a series of unequal cash flows. Example: PV of a deferred perpetuity
Assume the Kodon preferred stock in the preceding examples is scheduled to pay its first dividend
in four years, and is non-cumulative (i.e., does not pay any dividends for the first three years).
Given an 8% required rate of return, what is the value of Kodon’s preferred stock today?
