9. Stocks that don't pay dividends yet Goodwin Technologles, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is Iikely to pay its first dividend three years from now. She expects Goodwin to pay a $4.75000 dividend at that time (D,=$4.75000) and belleves that the dividend will grow by 24.70000% for the following two years (D, and D3). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.20000% per year. Goodwin's required return is 14.00000%. 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. What will be Goodwin's expected dividend and capital gains yield in two years - that is, the year before member to carry out the cividend values to four decimal places. (Hint: You are at year 2 , and the first It the year. Find oY, and CGY,.) Gexpectied dividend yleid (or) Expected capital goins yield (Cory) Goodwin thas been very successtul, but ic hasnt paid a dividend yet. It circulstes a report to its key investors containing the following statement: 9. Stocks that don't pay dividends yet Goodwin Technologles, 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 $4.75000 dividend at that time (D4=$4.75000) and believes that the Oividend will grow by 24.70000% for the following two years (D, and D,). However, after the fith year, she expects Goodwin's dividend to grow at a constant rate of 4.20000% per year, Goodwin's required return is 14.00000%. 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. If investors expect a total rs $53.05,5.00%, what will be Goodwin's expected dividend and capital gains yield in two years-that is, the year before the firm begins paying divid $15.55 in, remember to carry out the dividend values to four decimal places. (Hint: You are at year 2 , and the first Expected arvidend yleid Expected capital gains yield (CGyj) Goodwin has been very successful, but it hasint paid a dividend yet. It orculates a report to its key invertors containing the following statement: If irvestors expect a total return of 15,00%, what will be Goodwin's expected dividend and capital gains yield in two years -that is, the year before the firm begins paying dlvidends? Again, remember to carry out the dividend values to four decimal places. (Hint: You are at year 2 , and the first dividend is expected to be paid at the end of the year. Find DY, and CGY, 4 ) Expected dividend yield (DY?) Expected capital gains yield (CGY,) Goodwin has been very successful, but i 11.54% d a dividend yet, it circulates a report to its key investors containing the following statement: Investors prefer the deferred tax liat 7.87% apital gains offer over dividends. Is this statement a possible explanation for why the firm hasn't pald a dividend yet? Yes No If investors expect a total return of 15.00%, what will be Goodwin's expected dividend and capital gains yield in two years-that is, the year before the firm begins paying dividends? Again, remember to carry out the dividend values to four decimal places. (Hint: You are at year 2, and the first dividend is expected to be paid at the end of the year. Find DY, and CGY3 ) Goodwil feport to ats key investors containing the following statement: Is this thatement a posvible explanation for why the firm hasn't paid a dividend yet? Yes Nio