Investors that have purchased the stock of Bellmont Corp. are expected to receive dividends of $$45$ each year for the next $5$ years. If they happen to sell this stock after just a year, they would expect the stock to sell at $$600.$ If you were to buy the shares today and make a $20\%$ return, what should be the present value of the stock?

$$121\mathrm{.}7$

$$537\mathrm{.}5$

$$757\mathrm{.}5$

$$ Incorrect

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Incorrect. The present value of future cash flows would be what you would pay. Please ensure to determine the projected cash flows before determining the present value of the cash flows. Ensure that you compute each of the above using the appropriate formulas carefully.

$$341\mathrm{.}4$