CK Company stockholders expect to receive a year-end dividend of $5 per share and then immediately sell their shares for $115 dollars per share. If the required rate of return for the stock is 20%, what is the current value of the stock? (HINT: The value of the stock is the PV of all expected future income streams. What are expected income streams in this problem? The expected dividend and the sale price when the stock is sold, right?) $122
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