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Hi :) can you please help me with this Thank you! The value that is given for the horizon value is 34.62, 24.24,29.43, 34.62 The
Hi :) can you please help me with this Thank you!
The value that is given for the horizon value is 34.62, 24.24,29.43, 34.62
The value that is given for the current intrinsic value is 9.79, 25.14, 22.83, 24.43
The expected dividend yield that is given is 8.11%, 9.21%, 0.00%, 10.29%
The capital gain yield that is given is 24.43%, 34.62%, 12%, 19.64%
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 $2.2500 dividend at that time (D3 = $2.2500) and believes that the dividend will grow by 11.70% for the following two years (D4 and Ds). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 3.60% per year. Goodwin's required return is 12.00%. Fill in the following chart to determine Goodwin's horizon value at the horizon 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 $34.62 Current Intrinsic value Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is Goodwin's capital gains yield is , and
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