As companies evolve, certain factors can drive sudden growth.
This may lead to a period of nonconstant, or variable, growth. This
would cause the expected growth rate to increase or decrease,
thereby affecting the valuation model. For companies in such
situations, you would refer to the variable, or nonconstant, growth
model for the valuation of the company’s stock.
Consider the case of Portman Industries:
Portman Industries just paid a dividend of $3.1200 per share.
The company expects the coming year...