Business
Business, 12.04.2021 23:10, litzy9506

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 $5.50000 dividend at that time (D₃ = $5.50000) and believes that the dividend will grow by 28.60000% for the following two years (D₄ and D₅). However, after the fifth year, she expects Goodwin’s dividend to grow at a constant rate of 4.38000% per year. Goodwin’s required return is 14.60000%. 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.
What is the horizon value and the current intrinsic value?
Also, what are goodwins' current dividend yield and capital gains yield?
Goodwin has yet to record a profit (positive net income).
Is this statement a possible explanation for why the firm hasn’t paid a dividend yet?

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Answers: 1

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