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8. Nonconstant growth stock As companies evolve, certain foctors can drive sudden-growth. This may lead to a period of nonconstant, or variable, growth. This would cause the expected growth rate to increase or decrease, thereby affecting the valuation model. For companies in such situations, vou would refer to the variable. or nonconstant, growth model for the valuation of the companys stock. Consider the case of Portman Industries: Portman Industries Just paid a cvidend of $3,12 per share. The company expects the coming year to be very profitable, and its oividend is expected to grow by 16,00% over the next year. After the next year, theugh, Portman's dividend is expected to grow at a constant rate of 3.20% per yeac. Assuming that the market is in equilibrium, use the information just given to complete the table. The riskfree rate (fuy) is 4.00%, the market risk premium (RPM) is 4.80%, and Portman's bete is 1.30. What is the expected dividend yield for Portman's stock todar? 5.62% 6.81% 7.03%