Please explain

Portman Industries just paid a dividend of $2.16 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. The risk-free rate (PRF) is 4.00%, the market risk premium (RPM) is 4.80%, and Portman's beta is 1.40. Term Dividends one year from now (D1) Horizon value () Intrinsic value of Portman's stock Value $2.5056 $34.39 $31.06 Assuming that the market is in equilibrium, use the information just given to complete the table. What is the expected dividend yield for Portman's stock today? O 7.29% 0 7.52% 06.02% 8.07% Now let's apply the results of your calculations to the following situation: Portman has 200,000 shares outstanding, and Judy Davis, an investor, holds 3,000 shares at the current price (computed above). Suppose Portman is considering issuing 25,000 new shares at a price of $28.32 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis? $0.48 per share $0.69 per share $0.56 per share $1.18 per share Thus, Judy's investment will be diluted, and Judy will experience a total Portman has 200,000 shares outstanding, and Judy Davis, an investor, holds 3,000 shares at the current price (computed above). Suppose Portman is considering issuing 25,000 new shares at a price of $28.32 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis? $0.48 per share $0.69 per share $0.56 per share $1.18 per share Thus, Judy's investment will be diluted, and Judy will experience a total $1,680.00 $1,092.00 $2,016.00 $1,260.00