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Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is tikely to

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Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is tikely to pay its first dividend three years from now. She expects Goodwin to pay a $5.50000 dividend at that time (D, =$5.50000) and believes that the dividend will grow by 28.60000% for the following two years (D,andD4). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.38000% per year. Goodwin's required return is 14.60000%. Fll in the following chart to determine Goodwin's horizon value at the horizon date (when constant growth begins) ond 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 return of 15.60%, what wil 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,andCGYV ) Goodwin has been very successful, but it hasnt paid a dividend yet. It circulates a report to its key investors containing the following statement: Goodwin hos a large selection of profitable investment opportunities

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