Dividends one year from now Options: (2.88 or 3.12 or 3.60 or 3.00) in $...

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Dividends one year from now Options: (2.88 or 3.12 or 3.60 or 3.00) in $

Horizon Value Options (34.09 or 75.00 or 32.73 or 23.44) in $

Intrinsic Value of Portmans Stock Options (32.77 or 30.22 or 38.17 or 39.32) in $

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Consider the case of Portman Industries: Portman Industries just paid a dividend of $2.40 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, Portman's 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. Value Term Dividends one year from now (D:) Horizon value (Pi) Intrinsic value of Portman's stock The risk-free rate (TRF) is 5.00%, the market risk premium (RPM) is 6.00%, and Portman's beta is 1.30. What is the expected dividend yield for Portman's stock today? 8.45% 7.03% O 8.79% 9.53%

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