A sum of $20000 is invested in equity shares of XYZ CORPORATION for a period of 10 years.If the market value of this investment became $51875 after 10 years and the interest is reckoned continuously @10 percent per year, show that the investment become profitable if it gives a shareholder a dividend yield of 3% per year for 10 years. Ans: Dividend of 3% of $20000=$600 =3792.72335(B)Present value of market value of $51875 after 10 years = Thus, the total present value calculated in (A) and (B)[22876.47] is greater than the initial investment amount $20000. So we can say investment of $20000 in XYZ CORPORATION is profitable.Are my calculations right?Let me know from this forum.