Question
Portman Industries just paid dividends of $3.36 share.. Portman Industries just paid a dividend of $3.36. per share. The company expects the coming year to
Portman Industries just paid dividends of $3.36 share.. Portman Industries just paid a dividend of $3.36. per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 16% 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 is 4.00%, the market risk premium is 4.80%, and Portman's beta is 1.70. Assuming the market is equilibrium, use the information just given to find :
1. Dividends per year from now? __________
2. Horizon Value ?__________
3. Intrinsic Value of Portman's stock?__________
4. What is the expected dividend yield for Portman's stock today?
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