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Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $3.50000 dividend at that time (D, the dividend will grow by 18.20000% for the following two years (D, and D.). However, after the fifth year, she expects Goodwin's dividend to grow at = $3.50000) and believes that a constant rate of 3.90000% per year. Goodwin's required return is 13.00000%. Fill in the following chart to determine Goodwin's horizon value at the horizon date (when constant growth begins) and the current intrinsic value. To increase the accuracy of your calculations, do not round your intermediate calculations, but round all final answers to two decimal places. Term Horizon value Current intrinsic value Value $67.00 S If investors expect a total re $39.08 the firm begins paying divid dividend is expected to be p $47.46 $55.83 Expected dividend yield (DY) .00%, what will be Goodwin's expected dividend and capital gains yield in two years-that is, the year before in, remember to carry out the dividend values to four decimal places. (Hint: You are at year 2, and the first end of the year. Find DY, and CGY.) Expected capital gains yield (CGY) Goodwin has been very successful, but it hasn't paid a dividend yet. It circulates a report to its key investors containing the following statement: Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $3.50000 dividend at that time (D, the dividend will grow by 18.20000% for the following two years (D, and D.). However, after the fifth year, she expects Goodwin's dividend to grow at = $3.50000) and believes that a constant rate of 3.90000% per year. Goodwin's required return is 13.00000%. Fill in the following chart to determine Goodwin's horizon value at the horizon date (when constant growth begins) and the current intrinsic value. To increase the accuracy of your calculations, do not round your intermediate calculations, but round all final answers to two decimal places. Term Horizon value Current intrinsic value Value $67.00 S If investors expect a total re $39.08 the firm begins paying divid dividend is expected to be p $47.46 $55.83 Expected dividend yield (DY) .00%, what will be Goodwin's expected dividend and capital gains yield in two years-that is, the year before in, remember to carry out the dividend values to four decimal places. (Hint: You are at year 2, and the first end of the year. Find DY, and CGY.) Expected capital gains yield (CGY) Goodwin has been very successful, but it hasn't paid a dividend yet. It circulates a report to its key investors containing the following statement:
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