Question
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
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 20.00% over the next year. After the next year, though, Portmans dividend is expected to grow at a constant rate of 4.00% per year.
Assuming that the market is in equilibrium, use the information just given to complete the table.
| Term | Value |
|---|---|
| Dividends one year from now (D) | |
| Horizon value (P1P1) | |
| Intrinsic value of Portmans stock |
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Managerial Accounting
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp
1st Canadian Edition
978-0132490252, 132490250, 978-0176223311
