Portman Industries just paid a dividend of $1.92 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 rate of 3.20% per year. Term Value Dividends one year from now (D1D1) $2.2272 Horizon value (Pˆ1)P̂1 $22.10 Intrinsic value of Portman’s stock $21.41 The risk-free rate (rRFrRF) is 4.00%, the market risk premium (RPMRPM) is 4.80%, and Portman’s beta is 2.00. Assuming that the market is in equilibrium, What is the expected dividend yield for Portman’s stock today?

Portman Industries just paid a dividend of $1.92 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...

Portman Industries just paid a dividend of $1.92 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 rate of 3.20% per year.

Term	Value
Dividends one year from now (D1D1)	$2.2272
Horizon value (Pˆ1)P̂1	$22.10
Intrinsic value of Portman’s stock	$21.41

The risk-free rate (rRFrRF) is 4.00%, the market risk premium (RPMRPM) is 4.80%, and Portman’s beta is 2.00.

Assuming that the market is in equilibrium,

What is the expected dividend yield for Portman’s stock today?

Jun 07, 2022

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Portman Industries just paid a dividend of $1.92 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...

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