hello everyone, can someone tell me how they got PV(D) at r%, for example 1,274
1,274 = 1,50 * (1,06 ^ 2 )/ (1,15 ^ 2) = 1,6854 / 1,3225
We expect the dividend to be $1,6854 in 2 years’ time; the present value of that amount for 2 years at 15% leads us to divide the projected value of 1,6854 by 1,3225 to get the value today as 1,274.