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 $1.50000 dividend at that time (D, - $1.50000) and believes that the dividend will grow by 7.80000 % 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 3.42000% per year. Goodwin's required return is 11.40000 %. 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 Value Horizon value Current intrinsic value Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is and Goodwin's capital gains yield 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 has a large selection of profitable investment opportunities. HS, do not round your intermediate calculations, but round all final answers to two decimal places. Term Value Horizon value Current intrinsic value $22.59 Assuming that the markets librium, Goodwin's current expected dividend yield is and Goodwin's capital gains yield $19.20 $27.11 Goodwin has been very suc it hasn't paid a dividend yet. It circulates a report to its key investors containing the following statement: $15.81 Goodwin has a large selection of profitable investment opportunities. Is this statement a possible explanation for why the firm hasn't paid a dividend yet? No Yes Term Value Horizon value Current intrinsic value Assuming that the markets $8.15 librium, Goodwin's current expected dividend yield is and Goodwin's capital gains yield is $16.32 Goodwin has been very suc it hasn't paid a dividend yet. It circulates a report to its key investors containing the following statement: $15.23 $16.77 Goodwin has a large selection of profitable investment opportunities. Is this statement a possible explanation for why the firm hasn't paid a dividend yet? No Yes O 3 Term Value Horizon value Current intrinsic value Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is 9.19% Goodwin has been very successful, but it hasn't paid a dividend yet. It circulates a report to 9.91% 0,00% Goodwin has a large selection of profitable investment opportunities. 7.72% Is this statement a possible explanation for why the firm hasn't paid a dividend yet? No Yes and Goodwin's capital gains yield is vestors containing the following statement: Term Value Horizon value Current intrinsic value Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is and Goodwin's capital gains yield is 16.32% en very successful, but it hasn't paid a dividend yet. It circulates a report to its key investors containing the following statement: 22.59% 11.40000% a large selection of profitable investment opportunities. 13.1671% Is this statement a possible explanation for why the firm hasn't paid a dividend yet? No Yes O Goodwin has a large selection of profitable investment opportunities. Is this statement a possible explanation for why the firm hasn't paid a dividend yet? O No Yes