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Portman Industries just paid a dividend of $2.16 per share. The company expects the coming year...

Portman Industries just paid a dividend of $2.16 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 16.00% over the next year. After the next year, though, Portman's dividend is expected to grow at a constant rate of 3.20% per year. The required rate of return is 13.6%. Assuming that the market is in equilibrium, use the information given to answer the following question.

What will Portman's stock price be one year from now?

The answer choices are $24.09, $23.76, and $22.78

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Answer #1

Portman's stock price one year from now will be $24.09

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