Part II: Computation Questions $($Each $20$ points$)$

For full credit, you should show all your intermediate steps to the answer.

Compute the value of common stock: Upotoniccom. The company is expected to pay

its dividends in a pattern provided below. Notice that the beta of this stock $({}_v)=0\mathrm{.}5,$

$r^2=2\%,$ and ramet$=8\%$

$D_0=$$$1\mathrm{.}00$

$D_1=$$$1\mathrm{.}05$

$D_1-51\mathrm{.}1025$cdots $($this dividend

payment pattem continues.$)$