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 $3.7500 dividend at that time (D3-$3.7500) and believes that the dividend will grow by 19.50% 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 3.96% per year. Goodwin's required return is 13.20%. 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, carry the dividend values to four decimal places. Term Value Horizon value Current Intrinsic value Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is Goodwin's capital gains yield is , and 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's investment opportunities are poor. Is this statement a possible explanation for why the firm hasn't paid a dividend yet? O No O Yes The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value-added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFS) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Sally Rubber Co. has an expected net operating profit after taxes, EBIT(1 -T), of $800 million in the coming year. In addition, the firm is expected to have net capital expenditures of $120 million, and net operating working capital (NOWC) is expected to increase by $25 million. How much free cash flow (FCF) is Sally Rubber Co. expected to generate over the next year? O $655 million O $895 million O $705 million O $12,051 million Sally Rubber Co.'s FCFs are expected to grow at a constant rate of 4.62% per year in the future. The market value of Sally Rubber Co.'s outstanding debt is $3,190 million, and preferred stocks' value is $1,772 million. Sally Rubber Co has 375 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.86%. Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table Term Value (Millions) Total firm value value of common equity Intrinsic value per share