Attempts: Keep the Highest: 11 6. 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 Ds). 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 If Investors expect a total return of 12.40%, what will be Goodwin's expected dividend and capital gains yield in two yearsthat 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 CGY..) 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 containing the following statement: 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: Investors prefer the deferred tax liability that capital gains offer over dividends. Is this statement a possible explanation for why the firm hasn't paid a dividend yet? No Yes 6. Stocks that don't pay dividends yet Goodwin Technologies, a relatively young company, has been wildly successfu likely to pay its first dividend three years from now. She expects Goodwin to the dividend will grow by 7.80000% for the following two years (D. and Ds). constant rate of 3.42000% per year. Goodwin's required return is 11.40000%. Fill in the following chart to determi begins) and the current intrinsic value. To increase the accuracy of your calcu answers to two decimal places. Term Value Horizon value Current intrinsic value $19.20 If investors expect a total re$27.11 .40%, what will be Goodwin's expected the firm begins paying divid $15.81 bin, remember to carry out the dividend dividend is expected to be end of the year. Find DY, and CGY3.) $22.59 Expected dividend yield (DY) Expected capital gains yield (CGY) Goodwin has been very successful, but it hasn't paid a dividend yet. It circulate: 6. Stocks that don't pay dividends yet Goodwin Technologies, a relatively young company, has been wildly successful likely to pay its first dividend three years from now. She expects Goodwin to pa the dividend will grow by 7.80000% for the following two years (D. and Ds). Ho constant rate of 3.42000% per year. Goodwin's required return is 11.40000%. Fill in the following chart to determine begins) and the current intrinsic value. To increase the accuracy of your calculati answers to two decimal places. Term Value Horizon value Current intrinsic value $16.77 If investors expect a total re 2.40%, what will be Goodwin's expected divic the firm begins paying divid $8.15 pin, remember to carry out the dividend value dividend is expected to be end of the year. Find DY; and CGY3.) $16.32 $15.23 Expected dividend yield (DY) Expected capital gains yield (CGY3) Goodwin has been very successful, but it hasn't paid a dividend yet. It circulates a re Value Term Horizon value Current intrinsic value If investors expect a total return of 12.40%, 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 CGY..) Expected dividend yield (DY,) Expected capital gains yield (CGY,) 7.72% Goodwin has been very successful, but it 9.91% bid a dividend yet. It circulates a report to its key investors containing the following statement: 8.34% 9.19% Investors prefer the deferred tax lial Jcapital gains offer over dividends. Is this statement a possible explanation for why the firm hasn't paid a dividend yet? No Yes Grado It Now Save & Continue Continue without saving Ch 09: Assignment - Stocks and Their valuation Value Term Horizon value Current intrinsic value If investors expect a total return of 12.40%, 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 CGY..) Expected dividend yield (DY) Expected capital gains yield (CGY,) Goodwin has been very successful, but i 0.21% ha dividend yet. It circulates a report to its key investors containing the following statement: 4.06% Investors prefer the deferred tax liat 11.32% ppital gains offer over dividends. -4.17% Is this statement a possible explanation for why the firm hasn't paid a dividend yet? NO Yes Grade It Now Save & Continue Continue without saving