Question

Orange Valley Technology stock is expected to pay a dividend of 4.69 dollars in 1 year. The stock is currently priced at 86.45 dollars, is expected to be priced at 91.26 dollars in 1 year, and is expected to be priced at 98.64 dollars in 2 years. What is the dividend in 2 years expected to be for Orange Valley Technology stock? The stock’s dividend is paid annually and the next dividend is expected in 1 year.

Answer 1

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? v . 05:38 ENG 17-03-2020 23 AV627 fix X AU AT AV AW AX AY AZ BA BB BC BD BE BF 606 607 608 609 610 611 FIRST WE HAVE TO CALCULATE " ke" ke = DIVIDEND YIELD + CAPITAL GAIN YIELD ke = D1/PO + (P1-PO)/PO ke = 4.69/86.45 + (91.26-86.45)/86.45 ke = 0.054251 + 0.055639 ke = 10.9890% 612 613 614 615 616 617 NOW PO = 86.45 = 86.45 = 2.15 = D2 = D2 = 01/(1+ke) + D2/(1+ke)^2 + P2/(1+ke)^2 4.69/(1+0.109890)^1 + D2/(1+0.109890)^2 + 98.64/(1+0.109890)^2 0.81178 (D2) + 84.30 0.81178 (D2) 2.6485 2.65 618 619 620 ANSWER 626 628 629 ... convexity DGM beta port future INDEX INTL CAP BUD SANDRINE LEASING PORTFOLOQ DIR right clean YIELD bond portfolio WACC RESI DIV POLI ... :