Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer the full question correctly for thumbs up! Fill in all of the slots with an option and answer the yes or no.Thank you!

please answer the full question correctly for thumbs up! Fill in all of the slots with an option and answer the yes or no.Thank you!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
9. Stocks that don't pay dividends yet 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 $3.00000 dividend at that time (D1=$3.00000) and believes that the dividend will grow by 15.60000% for the following two years ( D4 and D1 ). However, after the fith year, she expects Goodwin's dividend to grow at a constant rate of 3.78000% per year. Goodwin's required retum is 12.60000%. Fil in the following chart to determine Goodwin's horizon value at the horizon date (when constant growth begins) and the current intrinbic value. To increase the accuracy of your calculations, do not round your intermediate calculations, but round all final answers to two decimal places. Goodwin has been very suc $40.09 tit hasnt paid a dividend yet. It drculates a report to its key investors containing the following statement: Goodwin has a large selection of profitable investment opportunities. 9. Stoclcs that don't pay dividends yet 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 $3.00000 dividend at that time (D, = $3.00000) and belleves that the dividend will grow by 15.60000% for the following two years ( D4 and D1). However, after the fift year, she expects Goodwin's dividend to grow at a constant rate of 3.7800046 per year. Goodwin's required retum is 12.60000%. Fil 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 caloulations, but round all final answers to two decimal places. Goodwin has a large selection of profitable investment opportunities. 9. Stocks that don't pay dividends yet Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forocasts that Goodwin is Iikely to pay its first dividend three years from now. She expects Goodwin to pay a $3.00000 dividend at that time (D1=$3.00000) and believes that the dividend will grow by 15.60000% for the following two years ( D, and D2). Howeves, after the fith year, she expects Goodwin's dividend to grow at a constant rate of 3.78000% per year. Goodwin's required retum is 12.60000\%. Fill in the following chart to determine Goodwin's horizon value at the horizon date (when constant growth begins) and the current intrinisic value. To increase the accuracy of your calculotions, do not round your intermediate calculations, but round all final answers to two decimal places. 9. Stocks that don't pay dividende yet 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 $3.00000 dividend at that time (D3=$3.00000) and believes that the dividend will grow by 15.60000% for the following two years (D. and D.). However, after the fith year, she expects Goodwin's dividend to grow at a constant rate of 3.780004 per year. Goodwin's required retum is 12.60000%. Fil in the following chart to determine Goodwin's horizon value at the horizon date (when constant growth begins) and the current intrinsle value. To increase the accuracy of your calculations, do not round your intermediate calculations, but round all final answers to two decimal places. Astuming that the markets are in equilibrium, Goodwin's current expected dividend yield is , and Goodwin's capital gains yleld is \begin{tabular}{|l|l|l} \hline 47.17%6 & pen very successful, but it hasn't paid a dividend yet. It circulates a report to its key investors containing the following statement: \\ \hline 12.60000% & \\ \hline 26.0600% & s a large selection of profitable investment opportunities. \\ \hline 32.53% & \end{tabular} a constant rate of 3.78000% per year. Goodwin's required return is 12.60000%. Alt in the following chart to determine Goodwin's hortzon value at the horizon date (inten constant growch begins) and the current intrinsic value. To increase the acauncy of your calculations, do not round your intermediate calaulations, but round all final answers to two dedmal places. Assuming that the markets are in equilibrium, Goodwin's current expected dividend yleld is , and Goodwin's capital gains yleld is Goodwin has been very successful, but it hasn' paid a dividend yet. It drculates a report to its key investors containing the following statement: Goodwin has a large selection of proftable investment opportunities. Is this statement a possible explanation for why the firm hasn't paid a dividend yet? Yes No

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Housing An Introduction

Authors: Cathy Davis

1st Edition

1447306481, 978-1447306481

More Books

Students also viewed these Finance questions

Question

Describe electronic commerce and web contracts.

Answered: 1 week ago

Question

demonstrate the importance of induction training.

Answered: 1 week ago