1. Portman Industries just paid a dividend of $2.16 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 12% over the next year. After the next year, though, Portman's dividend is expected to grow at a constant rate of 2.40% per year. The risk-free rate is 3.00%, the market risk premium is 3.60%, and Portman's beta is 1.90. Assuming the market is equilibrium, use the information just given to find :

Term	Value
1a.Dividends one year from now (D1)	?
1b.Horizon Value	?
1c.Intrinsic value of portmans stock	?

2. What is the expected dividend yield for Portman's stock today?

a. 7.98%

b. 5.95

c. 7.26%

d. 7.44%

3. Portman has 800,000 shares outstanding, and Judy Davis, an investor, holds 12,000 shares at the current price as just found. Suppose Portman is considering issuing 100,000 new shares at a price of $27.64 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman be diluted on a per-share basis?

a. $1.13 per share

b. $0.54 per share

c. $0.46 per share

d. $0.66 per share

4. Thus Judys investment will be diluted, and Judy will experience a total _profit or less_ of ________.

a. $4212

b. $4860

c. $6480

d. $7776