As companies evolve, certain factors can drive sudden growth. This may lead to a period of nonconstant, or variable, growth. This would cause the expected growth rate to increase or decrease, thereby affecting the valuation model. For companies in such situations, you would refer to the variable, or nonconstant, growth model for the valuation of the company's stock Consider the case of Portman Industries: Portman Industries just paid a dividend of $1.92 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, Portman's 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. Value Term Dividends one year from now (D) Horizon value (P) intrinsic value of Portman's stock The risk free rate (FRP) I 4.00%, the market risk premium (RP) is 4.80%, and Portman's beta is 2.00 Intrinsic value of Portman's stock The risk-free rate (TRF) is 4.00%, the market risk premium (RPM) is 4.80%, and Portman's bata is 2,00. What is the expected dividend yield for Portman's stock today? 10.08% 11.45% 10.41% 8.33% Holt Enterprises recently paid a dividend, Do, of $1.25. It expects to have nonconstant growth of 22% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 14%. a. How far away is the horizon date? I. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year 2. 11. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2. 111. The terminal, or horizon, date is Infinity since common stocks do not have a maturity date. IV. The terminal, or horizon, date is Year O since the value of a common stock is the present value of all future expected dividends at V. The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero. Full BC time zero. Select b. What is the firm's horizon, or continuing, value? Do not round Intermediate calculations, Round your answer to the nearest cont. c. What is the firm's intrinsic value today, Po? Do not round intermediate calculations, Round your answer to the nearest cent