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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 20.00% over the next year. After the next year, though, Portmans dividend is expected to grow at a constant rate of 4.00% per year. The risk-free rate (rRF) is 5.00%, the market risk premium (RPM) is 6.00%, and Portmans beta is 1.70. Term Value Dividends one year from now (D1) Horizon value (Pi) Intrinsic value of Portmans stock Assuming that the market is in equilibrium, use the information just given to complete the table. What is the expected dividend yield for Portmans stock today? О 10.77% О 11.20% О 12.41% О 8.96% Now lets apply the results of your calculations to the following situationPortman has 600,000 shares outstanding, and Judy Davis, an investor, holds 9,000 shares at the current price (computed above). Suppose Portman is considering issuing 75,000 new shares at a price of $17.48 per share. If the new shares are sold to outside investors, by how much will Judys investment in Portman Industries be diluted on a per-share basis? O $0.71 per share O $0.42 per share O $0.29 per share O $0.34 per share Thus, Judys investment will be diluted, and Judy will experience a total of

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum Wrap Text ta copy. B า 프 . Ej-., Δ. : r_一 逻锂函Merge & CeNOTE : IF WE DO NOT ROUND THE DILUTION VALUE PER SHARE, THE LOSS WILL BE 3090 (9000 X 0.3433)

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