Question: Hello Help with those two please 9. Stocks that don't pay dividends yet Goodwin Technologies, a relatively young company, has been wildly successful but has
Hello


Help with those two please
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 lirst dividend three years from now. She expects Goodwint to pay a $3.75000 dividend at that time (Da =$3.75000 ) and believes that the dividend will grow by 19.50000% for the following two years (D4 and Ds). However, after the finth year, she expects Goodwin's dividend to grow at a constant rate of 3.96000% per year. Goodwin's required retum is 13.20000%. Fill in the following chart to determine Goodwin's horizon value at the horizan 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. Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is , and Goodwin's capital gains yield is 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 lirst dividend three years from now. She expects Goodwin to pay a $3.75000 dividend at that time (Dn =$3.75000) and believes that the dividend will grow by 19.50000% for the following two years (D4 and Ds). However, after the finth year, she expects Goodwin's dividend to grow at a constant tate of 3.96000% per year. Goodwin's required retum is 13.20000%. Fill in the following chart to determine Goodwin's harizon value at the horizan 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. Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is , and Goodwin's capital gains yield is Goodwin has been very successful, but it hasn't paid a dividend yet. It circulates a report to Irvestors prefer the deferred tax liability that capital gains offer over dividends
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
