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 12.00% over the next year. After the next year, though, Portmans dividend is expected to grow at a constant rate of 2.40% per year. Assuming that the market is in equilibrium, use the information just given to complete the table.

Dividends one year from now (D) =?

Horizon value (P1) =?

Intrinsic value of Portmans stock =?

The risk-free rate (rRF) is 3.00%, the market risk premium (RPM) is 3.60%, and Portmans beta is 1.60. What is the expected dividend yield for Portmans stock today?

a. 6.36%

b. 6.76%

c. 5.09%

d. 6.22%