Question

Portman Industries just paid a dividend of $2.16 per share. Portman expects dividends to grow by 12% over the next year. The next year, the dividend is expected to grow at a constant rate of 2.4% per year.
The risk free rate is 3%, the market risk premium is 3.6% & the beta is 1.10. The market is at equilibrium, using the above information:
What is the expected dividend yield for the stock today?
4.65%
3.65%
4.76%
4.56%



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  • CreatedFebruary 08, 2013
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