The Valuation of Cash-Flows in the Presence of Dividend Barriers

A subject often recurring in financial and actuarial papers is the pricing of stocks and securities when the rate of return is stochastic. In most cases, the stocks considered are assumed not to pay out any dividend. In the present contribution we show how it is possible to obtain upper and lower bounds for the (distribution of the) accumulated value of a cash-flow in the presence of dividend barriers at a future time t, when the logarithm of the stock price is modelled by means of a Wiener process