Goodwin Technologes, a relatively young company, has been widly successful but has yet to pay a dividend: An analyst forecasts that Goodwin is likely to pay its fitst dividend three years from now. She expects Goodwin tp pay a $3.50000 dividend at that time (Da = $3.50000) and beleves that the dividend will grow by 18.20000% for the following two years (D. and Ds). HoweveG after the fitth year, she papects Goodwin's dividend to grow at a constant rate of 3.90000% per yeat. Goodwin's required ietiarn is 13.00000%. Fill in the folowing chait to deterinine Goodwin's horizon value at the horzon date (when constant growth begins) and the current intrinse value. To mcrease the accuracy of your calculations, do not round your intermediate calculstions, but round all final 3nswers to two decmal places. Goodwin has been very successful, but it hasn't paid a dividend yet. It drculates a report to its key investors containing the following statement: Goodwin has a large selection of profitable investment opportunities. Is this statement a possble explanation for why the firm hasn't pad a dividend yet? Yes No dividend will grow by 18.20000% for the following two years (D 4 and Ds). Howev constant rate of 3.90000% per year. Goodwin's required retum is 13.00000%. Fill in the following chart to determine Gc begins) and the current intrinsic value. To increase the accuracy of your calculations answers to two deamal places. joodwin's current expected dividend yi t paid a dividend yet. It circulates a rep 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? Yes No Ch 09- Assignment - Stocks and Their Valuation dividend will grow by 18.20000% for the following two years (D D4 and D5 ). However, after constant rate of 3.90000% per year. Goodwin's required return is 13.00000%. Fill in the following chart to determine Goodwin's begins) and the current intrinsic value. To increase the accuracy of your calculations, do not answers to two decimal places. , Goodwin's current expected dividend yield is in't paid a dividend yet. It circulates a report to its k, 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? Yes No , Goodwin's current expected dividend yield is , and Goodwin's capital gains yield sn't paid a dividend yet. It circulates a report to \begin{tabular}{|l|} \hline 10.91% \\ \hline 0.00% \\ \hline 8.76% \\ \hline 9.23% \\ \hline \end{tabular} able investment opportunities. r why the firm hasn't paid a dividend yet? Assuming that the markets are in equilibrium, Goodwin's current expected dividend is n very successful, but it hasn't paid a dividend yet. It circulates a ref a large selection of profitable investment opportunities. Is this statement a possible explanation for why the firm hasn't paid a dividend yet? Yes
