1. Consider the case of Portman Industries:

Portman Industries just paid a dividend of $3.12 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 16.00% over the next year. After the next year, though, Portmans dividend is expected to grow at a constant rate of 3.20% per year.

Assuming that the market is in equilibrium, use the information just given to complete the table.

Term	Value
Dividends one year from now (D)	($3.86, or $4.34, or $3.62, or $3.74?)
Horizon value (P1P1)	($116.88, or $51.42, or $53.13, or $36.52?)
Intrinsic value of Portmans stock	($48.19, or $58.33, or $61.76, or $51.47?)

2. The risk-free rate (rRFrRF) is 4.00%, the market risk premium (RPMRPM) is 4.80%, and Portmans beta is 1.30.

What is the expected dividend yield for Portmans stock today? (7.03%, or 7.51%, or 5.62% or 6.81%?)