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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 likely 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 likely to pay its first dividend three years from now. She expects Goodwin to pay a 55.50000 dividend at that time ( D55:50000) and bolleves that the dividend will grow by 28.60000% for the following two years (D and D). However, after the ninth year, the expects Goodwin's dividend to grow at a.constant rate of 4.38000% per year. Goodwin's required return is 14.60000W, Fin in the following chart to determine Goodwie parleon value or 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 alle final answers to two decimal places, Value Term Horizon value Current intrinsic value and Goodwin's capital gains yield is Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is 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 a large selection of profitable investment opportunities Is this statement a possible explanation for why the firm hasn't paid a dividend yet? No

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