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please answer the four drop down questions Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An
please answer the four drop down questions
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 $3.50000 dividend at that time (D,$3.50000) and believes tha the dividend will grow by 18.20000% for the following two years (D, and D). However, after the fift year, she expects Goodwin's dividend to grow a a constant rate of 3.90000% per year. Goodwin's required return is 13.00000%. 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. If investors expect a total return of 14,00%, what will be Goodwin's expected dividend and capital gains yield in two years - that is the year before the firm begins paying dividends? Again, 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 paid at the end of the year. Find OY, and CGY, -) Step by Step Solution
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