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Help please Im not find correct answers ntld-48 16456761401195kelSBN-9781305 Assignment 09- Stocks and Their Valuation Attempts: Keep the Highest: 0.5/3 8. Stocks that don't pay
Help please Im not find correct answers
ntld-48 16456761401195kelSBN-9781305 Assignment 09- Stocks and Their Valuation Attempts: Keep the Highest: 0.5/3 8. Stocks that don't pay dividends yet o relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is y to pay its first dividend three years from now. She expects Goodwin to pay a $3.50 dividend at that time-therefore, D - $3.50-and believes that the dividend will grow by 18.20% for the following two years, D. and Ds However, after the fifth year, she expects Good n 's dride d to grow at a constant rate of 3.90% per year. The required return on Goodwin's securities is 13.00%. Complete the following table after determining the horizon value, or the value of Goodwin's stock at the end of year-when the constant growth rate begins-and the current intrinsic value or value of Goodwin Technologies stock. Value Horizon value of Goodwin's stock at the end of year 5 Current intrinsic value of Goodwin Technologies stock Assume that investors have increased their expectations and now require a total return of 14.00%. Calculate Goodwin's expected dividend yield and capital gains yieid in year 2-that is, the year before the firm begins paying dividends? (Hint: You are at year 2, and the first dividend is expected to be paid at the end of the year, Find DYS and CC.) Expected dividend vield (DYS) Expected capital gains yield (CCm) Step by Step Solution
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