Apple corporation is looking to invest in Dark Sky computing company. Dark Sky is specialized in weather forecasting software applications. Apple corporation is looking to invest in 500,000 shares of...

Apple corporation is looking to invest in Dark Sky computing company. Dark Sky is specialized in weather forecasting software applications. Apple corporation is looking to invest in 500,000 shares of Dark Sky company in the end of the year. The current stock price of Dark Sky on the NASDAQ stock exchange is $24.84 per share, and the dividend yield for the coming year is expected to be 5.4%.

a)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?