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 $4.25000 dividend at that time (D3 = $4.25000) and believes that the dividend will grow by 22.10000% for the following two years (D4 and Ds). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.08000% per year Goodwin's required return is 13.60000%. 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. Value Term Horizon value Current intrinsic value ,and Goodwin's capital gains yield is Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is Goodwin has been very successful, but it hasn't paid a dividend yet. It ci rcu lates a report to its key investors containing the following statement: Goodwin's investment opportunities are poor Is this statement a possible explanation for why the firm hasn't paid a dividend yet? O Yes O No Save &Continue Grade It Now Continue without saving 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 $4.25000 dividend at that time (D3 = $4.25000) and believes that the dividend will grow by 22.10000% for the following two years (D4 and Ds). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.08000% per year Goodwin's required return is 13.60000%. 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. Value Term Horizon value Current intrinsic value $48.49 Assuming that the markets $83.12 ilibrium, Goodwin's current expected dividend yield is ,and Goodwin's capital gains yield is $69.27 Goodwin has been very suc $58.88 tit hasn't paid a dividend yet. It ci rcu lates a report to its key investors containing the following statement: Goodwin's investment opportunities are poor Is this statement a possible explanation for why the firm hasn't paid a dividend yet? O Yes O No Save &Continue Grade It Now Continue without saving 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 $4.25000 dividend at that time (D3 = $4.25000) and believes that the dividend will grow by 22.10000% for the following two years (D4 and Ds). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.08000% per year Goodwin's required return is 13.60000%. 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. Value Term Horizon value Current intrinsic value $14.36 ilibrium, Good win's current expected dividend yield is ,and Goodwin's capital gains yield is Assuming that the markets $47.47 $45.98 Goodwin has been very suc t it hasn't paid a dividend yet. It circulates a report to its key investors containing the following statement: $43.08 Goodwin's investment opportunities are poor Is this statement a possible explanation for why the firm hasn't paid a dividend yet? O Yes O No Save &Continue Grade It Now Continue without saving 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 $4.25000 dividend at that time (D3 = $4.25000) and believes that the dividend will grow by 22.10000% for the following two years (D4 and Ds). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.08000% per year Goodwin's required return is 13.60000%. 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. Value Term Horizon value Current intrinsic value ,and Goodwin's capital gains yield is Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is 0.00% Goodwin has been very successful, but it hasn't paid a dividend yet. It circulates a report to 11.29% estors containing the following statement: 9.15% 9.24% Goodwin's investment opportunities are poor Is this statement a possible explanation for why the firm hasn't paid a dividend yet? O Yes O No Save &Continue Grade It Now Continue without saving 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 $4.25000 dividend at that time (D3 = $4.25000) and believes that the dividend will grow by 22.10000% for the following two years (D4 and Ds). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.08000% per year Goodwin's required return is 13.60000%. 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. Value Term Horizon value Current intrinsic value ,and Goodwin's capital gains yield is Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is 69.27% een very successful, but it hasn't paid a dividend yet. It circulates a report to its key investors containing the following statement: 36.6145% 45.98% nvestment opportunities are poor. 13.60000% Is this statement a possible explanation for why the firm hasn't paid a dividend yet? O Yes O No Save &Continue Grade It Now Continue without saving