9. Stocks that don't pay dividends yet 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 $2,25000 dividend at that time (0 - $2.25000) and believes that the dividend will grow by 11.70000% for the following two years (D, and D.). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 3.60000% per year. Goodwin's required return is 12.00000%. Fill in the following chart to determine Goodwin's horizon value tate (when constant growth begins) and the current intrinsie value. To increase the accuracy of your calculations, do not found your te tions, but round a final answers to two decimal places. Value Term Horizon value Current intrinsic value It investors expect a total return of 13.00%, what will be Goodwin's expected dividend and capital gains yield in two years, the year before the firm begins paying dividends? Again, remember to carry out the dividend values to four decimal places. (Hint: you want yow 2, and the test dividend is expected to be paid a d at the end of the year. Find Dy, and cy) Expected dividend yield (DY) 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 Goodwin has yet to record a profit (positive net income). Is this statement a possible explanation for why the firm hasn't paid a dividend yet? Yes No