SCHWESER IS WRONG: volume 2, exam 3, afternoon session Q86

Tommyjohn

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Whyyyyyy aren’t they adding the dividend to the terminal value at t3 like we are supposed to?
the answer is D1 discounted plus D2 discounted^2 plus Terminal discounted. Why are they leaving out D3 which needs to be added to terminal
 
Because D3 is how you find the terminal value. D3 is the beginning of the stable period and would be added to D2 to find the present value
 
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