Portman Industries just paid a dividend of $3.12 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 of 3.20% per year. The risk free rate (rRF) is 4.00%, the market risk premium (RPM) is 4.80%, and the Portman's beta is 1.80. Assuming that the market is in equilibrium, us the information just give to complete the table:

Term

Dividends one year from now D1

Horizon Value

Intrinsic Value

Portman has 600,000 shares outstanding, and Judy Davis, an investor holds 9,000 shares at the current price as just found. Suppose Portman is considering 7,500 new shares at a price of $32.59 per share. If the new shares are sold to outside investors, by how much will Judys investment in Portland be diluted on a per-share basis: 1.34 per share 0.64 per share 0.79 share