Final answer:
The expected dividend yield for Portman's stock today is 7.04%. The horizon value of the stock is $23.73.
Step-by-step explanation:
The expected dividend yield for Portman's stock today can be calculated by dividing the expected dividend per share by the current stock price. The expected dividend per share is found by taking the current dividend per share and multiplying it by 1 plus the expected dividend growth rate. In this case, the expected dividend per share is $1.44× (1 + 0.16) = $1.6704. The current stock price is given as the intrinsic value, which is $23.73. Therefore, the expected dividend yield is $1.6704 / $23.73 = 7.04%.
The horizon value refers to the value of the stock at the end of the projection period, assuming that the dividend growth rate remains constant. In this case, the horizon value is given as $23.73, rounded to two decimal places.