What is expected dividend yield for portmans stock today

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Reference no: EM13809543

Portman Industries just paid a dividend of $2.16 per share. Th company expects the coming year to be very profitable, and its dividend is expected to grow by 12% over the next year. After the next year, though, Portman's dividend is expected to grow at a constant rate of 2.40% per year. The risk-free rate is 3.00%, the market risk premium is 3.60%, and Portman's beta is 1.90. Assuming the market is equilibrium, use the information just given to find :

Dividends one year from now

Horizon value (^P1)

Intrinsic Value of Portman's stock

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

a. 7.98%

b. 5.95

c. 7.26%

d. 7.44%

Reference no: EM13809543

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