Assumptions
Net Present Value (NPV): $49.887
Note: The above calculation assumes the company remains solvent and that the dividend is paid in perpetuity.
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Dividend Schedule
| Month (t) | Coupon (%) | Cash Flow | Present Value |
|---|---|---|---|
| 1 | 11.50% | 0.958 | 0.951 |
| 2 | 11.25% | 0.938 | 0.924 |
| 3 | 11.00% | 0.917 | 0.896 |
| 4 | 10.75% | 0.896 | 0.869 |
| 5 | 10.50% | 0.875 | 0.843 |
| 6 | 10.25% | 0.854 | 0.817 |
| 7 | 10.00% | 0.833 | 0.791 |
| 8 | 9.75% | 0.813 | 0.765 |
| 9 | 9.50% | 0.792 | 0.740 |
| 10 | 9.25% | 0.771 | 0.715 |
| 11 | 9.00% | 0.750 | 0.691 |
| 12 | 8.75% | 0.729 | 0.667 |
| 13 | 8.50% | 0.708 | 0.643 |
| 14 | 8.25% | 0.688 | 0.619 |
| 15 | 8.00% | 0.667 | 0.596 |
| 16 | 7.75% | 0.646 | 0.573 |
| 17 | 7.50% | 0.625 | 0.550 |
| 18 | 7.25% | 0.604 | 0.528 |
| 19 | 7.00% | 0.583 | 0.506 |
| 20 | 6.75% | 0.563 | 0.484 |
| 21 | 6.50% | 0.542 | 0.463 |
| 22 | 6.25% | 0.521 | 0.442 |
| 23 | 6.00% | 0.500 | 0.421 |
| 24 | 5.75% | 0.479 | 0.401 |
| 25 | 5.50% | 0.458 | 0.380 |
| 26 | 5.25% | 0.438 | 0.360 |
| 27 | 5.00% | 0.417 | 0.341 |
| 28 | 4.75% | 0.396 | 0.321 |
| 29 | 4.50% | 0.375 | 0.302 |
| 30 | 4.25% | 0.354 | 0.283 |
| 31 | 4.00% | 0.333 | 0.264 |
| 32 | 3.75% | 0.313 | 0.246 |
| 33+ (Perpetuity) | 3.60% | 0.300 | 31.493 |
