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Goodwin Technologies, a relatively young company, has been wildly accessful but has yet to pay a dividend. An analyst forecasts that Goodwinis hely to pay

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Goodwin Technologies, a relatively young company, has been wildly accessful but has yet to pay a dividend. An analyst forecasts that Goodwinis hely to pay its first dividend three years from now. She expects Goodwin to pay a $2.75000 dividend at that time (0, - $2.75000) and beleves that the dividend will grow by 14.30000% for the following two years (D, and D.). However, after the fifth year, she expects Goodwin's dividend to grow at constant rate of 3.72000% per year Goodwin's required return is 12.40000%. 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 Value Term Horizon value Current intrinsic value I investors expect a total return of 13.40%, 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 Gvidend 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 creates a report to its key investors containing the following statements If investors expect a total return of 13.40%, 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 it hasn't paid a dividend yet. It circulates a report to its key inwestors containing the following statement: 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

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