1. Portman Industries just paid a dividend of $3.36 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 20% over the next year. After the next year, though, Portman's dividend is expected to grow at a constant rate of 4% per year. The risk-free rate is 5.00%, the market risk premium is 6%, and Portman's beta is 1.70. Assuming the market is equilibrium, use the information given to find :

1a.Dividends one year from now (D1)?

1b.Horizon Value?

1c.Intrinsic value of portman's stock?

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

3. Portman has 200,000 shares outstanding, and Judy Davis, an investor, holds 3,000 shares at the current price as just found. Suppose Portman is considering issuing 25,000 new shares at a price of $30.60 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?

4. Thus Judy's investment will be diluted, and Judy will experience a total _____(profit or loss) of ________?