Portman Industries just paid a dividend of $2.16 per share. Portman expects dividends to grow by 12% over the next year. The next year, the dividend is expected to grow at a constant rate of 2.4% per year.

The risk free rate is 3%, the market risk premium is 3.6% & the beta is 1.10. The market is at equilibrium, using the above information:

What is the expected dividend yield for the stock today?

1. 4.65%

2. 3.65%

3. 4.76%

4. 4.56%