[tomp]

Either you're stupid, or there's a misunderstanding. Probably the latter. Let me try again. Assume that δ is the discount factor (δ = 1 / (1 + r)), P is price, and D_i is the dividend in year i.

Before dividend:

  P = D_0 + δ D_1 + δ^2 D_2 + δ^3 D_3 + ...

After dividend:

  P = δ D_1 + δ^2 D_2 + δ^3 D_3 + ...

[JDDunn9]

When calculating the value of an annuity, all that matters is your number of periods, the amount, and your discount rate. This is why an annuity appreciation chart over time is continuous.

[harperlee]

This comment would be better without the gratuitous namecalling.

[tomp]

Sorry, I get very (too) emotional when someone is wrong with math...