Characteristics is probably the least important

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Reference no: EM132002425

1. When selecting a venture capitalist, which one of the following characteristics is probably the least important?

Level of involvement.

Contacts.

Underwriting experience.

Exit strategy.

Financial strength.

2. Portman Industries just paid a dividend of $1.44 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 12% over the next year. After the next year, though, Portman's dividend is expected to grow at a constant rate of 2.40% per year. The risk-free rate is 3.00%, the market risk premium is 3.60%, and Portman's beta is 1.90. Assuming the market is equilibrium, use the information just given to find : 1a.Dividends one year from now (D1) ? 1b.Horizon Value ? 1c.Intrinsic value of portman’s stock ? 2. What is the expected dividend yield for Portman's stock today?

a. 7.98% b. 5.95 c. 7.26% d. 7.44%

Reference no: EM132002425

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