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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 $5.25000 dividend at that time (0, - $5.25000) and believes that the dividend will grow by 27.30000% for the following two years (0, and D). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.32000% per year. Goodwin's required return is 14.40000%. 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. Term Value Horizon value Current intrinsic value $74.84 If investors expect a total $61.63 40%, what will be Goodwin's expected dividend and capital gains yield in two years-that is, the year before the firm begins paying divid h, 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 end of the year. Find DY and CGY) $88.05 $105.66 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 investors containing the following statement: Goodwin's Investment opportunities are poor Goodwin Technologies, a relatively young company, has been wildly successful but has yet to likely to pay its first dividend three years from now. She expects Goodwin to pay a $5.25000 the dividend will grow by 27.30000% for the following two years (D and D.). However, after th a constant rate of 4.32000% per year. Goodwin's required return is 14.40000%. Fill in the following chart to determine Goodwin's hor begins) and the current intrinsic value. To increase the accuracy of your calculations, do not ro answers to two decimal places. Term Value Horizon value Current intrinsic value $16.75 If investors expect a total re 5.40%, what will be Goodwin's expectes dividend and capit the firm begins paying divid $53.18 pin, remember to carry out the dividend values to four deci dividend is expected to be end of the year. Find Dy, and CGY..) $58.63 $56.69 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 ke Goodwin's investment opportunities are poor. Term Value Horizon value Current intrinsic value If investors expect a total return of 15.40%, what will be Goodwin's expe the firm begins paying dividends? Again, remember to carry out the divid 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) 11.79% Goodwin has been very successful, but if 9.26% d a dividend yet. It circ 9.66% 7.81% Goodwin's investment opportunities Is this statement a possible explanation for why the firm hasn't paid a divic Yes NO Term Value Horizon value Current intrinsic value If investors expect a total return of 15.40%, what will be Goodwin's expected dividend and capital 9 the firm begins paying dividends? Again, remember to carry out the dividend values to four decimal 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 il 7.59% -2.93% d a dividend yet. It circulates a report to its key inv 20.05% Goodwin's investment opportunities 14.33% Is this statement a possible explanation for why the firm hasn't paid a dividend yet? Yes No Gra 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 $5.25000 dividend at that time (0, - $5.25000) and believes that the dividend will grow by 27.30000% for the following two years (0, and D). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.32000% per year. Goodwin's required return is 14.40000%. 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. Term Value Horizon value Current intrinsic value $74.84 If investors expect a total $61.63 40%, what will be Goodwin's expected dividend and capital gains yield in two years-that is, the year before the firm begins paying divid h, 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 end of the year. Find DY and CGY) $88.05 $105.66 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 investors containing the following statement: Goodwin's Investment opportunities are poor Goodwin Technologies, a relatively young company, has been wildly successful but has yet to likely to pay its first dividend three years from now. She expects Goodwin to pay a $5.25000 the dividend will grow by 27.30000% for the following two years (D and D.). However, after th a constant rate of 4.32000% per year. Goodwin's required return is 14.40000%. Fill in the following chart to determine Goodwin's hor begins) and the current intrinsic value. To increase the accuracy of your calculations, do not ro answers to two decimal places. Term Value Horizon value Current intrinsic value $16.75 If investors expect a total re 5.40%, what will be Goodwin's expectes dividend and capit the firm begins paying divid $53.18 pin, remember to carry out the dividend values to four deci dividend is expected to be end of the year. Find Dy, and CGY..) $58.63 $56.69 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 ke Goodwin's investment opportunities are poor. Term Value Horizon value Current intrinsic value If investors expect a total return of 15.40%, what will be Goodwin's expe the firm begins paying dividends? Again, remember to carry out the divid 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) 11.79% Goodwin has been very successful, but if 9.26% d a dividend yet. It circ 9.66% 7.81% Goodwin's investment opportunities Is this statement a possible explanation for why the firm hasn't paid a divic Yes NO Term Value Horizon value Current intrinsic value If investors expect a total return of 15.40%, what will be Goodwin's expected dividend and capital 9 the firm begins paying dividends? Again, remember to carry out the dividend values to four decimal 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 il 7.59% -2.93% d a dividend yet. It circulates a report to its key inv 20.05% Goodwin's investment opportunities 14.33% Is this statement a possible explanation for why the firm hasn't paid a dividend yet? Yes No Gra

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