ABT is a venture capital firm, they focus their investments on software companies in the US. Their most recent investment opportunity is in VMware corporation. They decide to invest in VMware and want...

ABT is a venture capital firm, they focus their investments on software companies in the US. Their most recent investment opportunity is in VMware corporation. They decide to invest in VMware and want to buy 300,000 shares. VMware corporation’s current stock price is $123.58, and the expected dividend yield is 6.1%.

1. What is the expected value of the first dividend payment at the end of the year?

b) How would you use the dividend yield model to value the price of a stock if it presently does not pay dividends but is expected to pay dividends in the future