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ou are considering buying a share of stock which you expect to pay a dividend at the end of each of the next five years.

ou are considering buying a share of stock which you expect to pay a dividend at the end of each of the next five years. As soon as you receive the last dividend, you plan to sell the stock. The dividends and expected selling price are shown in the table below. Use the required return in the table as your discount rate
7.09% Required return
Year 012345
Expected Selling Price $147.00
Dividend $4.56 $4.56 $4.56 $4.56 $4.56
Total Cash Flow $4.56 $4.56 $4.56 $4.56 $151.56
inflow inflow inflow inflow inflow
What is this investment worth in today's money (i.e., what is the sum of the present values of each total cash flow)?

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