9. Portman Industries just paid a dividend of $2.40 per share. The company expects the coming 3 year to be very profitable, and its dividend is expected to grow by 12% over the next 3 years. After the next 3 years, though. Portman's dividend is expected to grow at a constant rate of 2.4% per year. Use the CAPM formula r=Rrf+B( MRP) to calculate the required return. Risk free rate (Rif)=3%, market risk premium (MRP)=3.6%, and Portman's beta (B)=1.9. DRAW YOUR TIMELINE! a. What are Portman's dividends 1,2,3, and 4 years from now? D1=D2=D4= b. If you want to buy Portman's stock today, how much will you be willing to pay? ANSWER: c. If you buy Portman's stock today, what do you think the price will be at the end of year 4