Condition1:Div at each date are equal to the cash flow Vo Divo Divi/(1+r) Value of the firm =10,000+10,000/(1+10%)=19,090.91 Value per share=10+10/(1+10%)=19.09 Price after ex-dividend date =19.09-10=9.09 slide 9slide 9 Condition1: Div at each date are Condition1: Div at each date are equal to the cash flow equal to the cash flow V 0 = Div 0 + Div 1/(1+r) Value of the firm =10,000+10,000/(1+10%)=19,090.91 Value per share = 10 +10/(1+10%) = 19.09 Price after ex-dividend date = 19.09 –10 = 9.09