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answer all questions please 7. Nonconstant erowth stock As companies evolve, certain factors can drive sudden growth. This myy lead to a period of nonconstant,
answer all questions please
7. Nonconstant erowth stock As companies evolve, certain factors can drive sudden growth. This myy lead to a period of nonconstant, or variable, growth. This would cause the expectiod growth rate to increase or decrease, thereby offecting the valuation model, for companles in such situations, vou would refer to the variablo, or noncenstant, erowth model for the valuation at the campary's stock. Consider the case of Portman Industries: to grow by 20.004 over the next year. After the next year, though, Portuman's dividend is expected to grow at a constant rate of 4.00% per year. Assuming that the maket is in equitibriam, we the information fust given to complete the table: The risk-free rate (Cor) is 5.00%, the market nsk premium (R.PM) is 6.00%, and Portman's beta is 1.40 . What is the expected dividend yield for Portman's stock today? 9.05% 10.26% 7.530 Step by Step Solution
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