Goodwn tech , a relativelyu young company, has been wildly successful but has yet to pary a dividend. An analyst forecasts that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $3.00 dividend at that time and believes that the dividend will grow by 15.6% for the following two years. However, after the fifth year, she expects Goodwin dividend to grow at a constant rate of 3.78% per year.

Goodwin required a 12.60%.

What is the horizon value_______ at the horizon date when constant growth begins- and what is the current intrinsic value____?

Goodwin has been very successful, but iot hasnot paid a dividend yet. It circulates a report to its key investores containing the following statement:

Investors prefer the deferred tax liability that capital gains offer over dividends.

Is this statement a possible explanation for why the firm hasn't paid a dividend yet?

Yes or no