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Need help answering these questions 10000003646 a900e0000&ct ami 00028ck 1.1487958903680 oAAA690001595BD 11. Non constant growth stock Aa Aa As companies evolve, oertain factors can drive

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10000003646 a900e0000&ct ami 00028ck 1.1487958903680 oAAA690001595BD 11. Non constant growth stock Aa Aa As companies evolve, oertain factors can drive sudden growth. lead to a period of nonconstant, or variable, growth. This would cause the expected growth rate to increase This may thereby affecting the valuation model or decrease, For companies in such situations, you would refer to the variabl 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 $1.20 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 12.00% 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. Investors expect a required rate of return of 8.76% on value Term Portman's stock. Dividends one year from now (D1) Value of Portman's stock at the $1.3440 Assuming that the market is in equilibrium, use the $1.5415 end of the nonconstant dividend- information just given to complete the table. $1.4093 growth period $1.3763 Portman's stock price what is the expected dividend yield for Portman's stock today? O 5.09% 6.75% 6.36% O 6.21%

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