What is the intrinsic value of portmans stock

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Reference no: EM13722795

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 12.00% over the next year. After teh 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 profanes beta is 1.90.

Assuming that the market is in equilibrium

What are the dividends one year from now________?

What is the Horizon Value__________?

What is the intrinsic value of Portman's stock_______?

What is the expected dividend yield for portmant stock today?

a. 5.95% b. 7.44% c. 7.26% d7.98%

Reference no: EM13722795

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