Question

x Alar Student Question Cenpage Digial Leaningloai gage vaf/servlet/quiztquiz.action-takeQuiz&quiz_probGuid-ONAPCOA8010100000047443eboob0000&ctx-jwalker1-0043&ck m 15 Hulu Current Students 9. Stocks that don't pay dividends yet Goodwin Technologies, a relatively young company, has been widly succssful but has yet to pay a dividend. A forecasts that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a dividend at that time (D,-$2.7500) and believes that the dividend will grow by 14.30% for the following $2.7500 two years (Da and Ds). However, after the fith 3.72% per year. year, she expects Goodwin's dividend to grow at a constant rate of Goodwin's recured return is 12.40%. Fil in the tlomng chart to determine Goodwin's horizon value at the horen date-when constant growch begins-and the current intrinsic value. To increase the accuracy of your carry the dividend values to four decimel places Value Horizon value Current Intrinsic value tr ivestors expecl a total return of 13.40%, what wa be Goodiens expected avidend and apital gens veld in two years-that is, the year betore 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 DYs and CGYs-) Expected dividend yield (DY) Expected capital gains yield (CGYs) Goodwin has been very successful, but it hasnt paid a dividend yet. it circulabes a report to its key investors containing the following statement Goodwin has a large selection of profitable investment opportunities ts this statement a possible explanation for why the firm hasn't paid a dividend yet? O Yea O No

Answer 1