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Business, 05.07.2021 19:30 hopechinn6646

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 20.00% 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 is 3%, the market risk premium is 3.6% and Portman's beta is 1.9. Required:
a. What are Portman's Dividends Year One, Year Two, and Year Three from now?
b. If you want to buy Portman's stock today, how much will you be willing to pay?
c. If you buy Portman's stock today, how much will you be able to sell it at the end of year 4?

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Portman Industries just paid a dividend of $2.40 per share. The company expects the coming year to b...
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