Portman Industries just paid a dividend of $$1\mathrm{.}92$ per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by $20\mathrm{.}00\%$ over the next year. After the next year, though, Portman$$s dividend is expected to grow at a constant rate of $4\mathrm{.}00\%$ per year. $($Note: Do not round your intermediate calculations.$)$

Term

Value

Dividends one year from now $($D$1$

$)($Note: Rounded to four decimal places$)$

Horizon value $($P$1)$

$($Note: Rounded to two decimal places$)$

Intrinsic value of Portman$$s stock $($Note: Rounded to two decimal places$)$

The risk$-$free rate $($rRF

$)$ is $5\mathrm{.}00\%,$ the market risk premium $($RPM

$)$ is $6\mathrm{.}00\%,$ and Portman$$s beta is $1\mathrm{.}90.$

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?

$9\mathrm{.}92\%$

$13\mathrm{.}88\%$

$12\mathrm{.}40\%$

$11\mathrm{.}93\%$