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Homework answers / question archive / Portman Industries just paid a dividend of $1

Portman Industries just paid a dividend of $1

Finance

Portman Industries just paid a dividend of $1.68 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 20% 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. The risk-free rate (rRF) is 5%, the market risk premium (RPM) is 6%, and Portman's beta is 1.20. 
Please calculate:
 Dividends one year from now (D1)

Horizon value (P1)

Intrinsic value of Portman's stock 

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

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