1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bonufazy [111]
3 years ago
5

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 $4.25000 dividend at that time (D₃ = $4.25000) and believes that the dividend will grow by 22.10000% 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 4.08000% per year.
Goodwin’s required return is 13.60000%. 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.

Term

Value

Horizon value ________
Current intrinsic value ________
If investors expect a total return of 14.60%, 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 DY₃ and CGY₃.)

Expected dividend yield (DY₃) _______
Expected capital gains yield (CGY₃) ________
Goodwin has been very successful, but it hasn’t paid a dividend yet. It circulates a report to its key investors containing the following statement:

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?

a.Yes

b.No
Business
1 answer:
alexandr1967 [171]3 years ago
4 0
I it’s think yes! Good luck!! :)
You might be interested in
The value of Surnum's, a developing economy, currency is fixed relative to the U.S. dollar. The exchange rate between the Surnum
Verizon [17]

Answer:

Surnum's exchange rate is pegged.

Explanation:

Exchange rate is the rate at which a countrie's currency is exchanged for another. Usually when there is more demand for a countrie's currency it will have more value than other currencies and vice versa.

There are two ways a countrie's currency rate can be controlled in relation to others.

First is by market forces of demand and supply.

Secondly is by pegging the countrie's currency against another and using reserves of the other currency to account for market fluctuations.

In this instance Surnum has pegged it's currency against the dollar, so it will use its dollar reserves to account for fluctuations in order to maintain the pegged exchange rate.

4 0
3 years ago
Select all the descriptions of NAFTA that are true.
leonid [27]
The best and most correct answer among the choices provided by the question are  the following:

<span>a trade bloc between Canada, U.S., and Mexico
a trade organization that equally benefits all nations
an agreement to only buy goods from the countries involved</span>
Hope my answer would be a great help for you.    If you have more questions feel free to ask here at Brainly.
8 0
3 years ago
Read 2 more answers
Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours
Rainbow [258]

Answer:

The correct answer is C: $944

Explanation:

Giving the following information:

Single plantwide predetermined overhead rate based on machine-hours. Total fixed manufacturing overhead cost of $237,000, variable manufacturing overhead of $3.90 per machine-hour, and 30,000 machine-hours.

First, we need to determine the manufacturing overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base= (237000/30000)+3.9= $11.8 per machine hour.

Now, we can calculate the allocated overhead:

allocated overhead= Estimated manufacturing overhead rate* actual amount of allocation base= 11.8*80= $944

6 0
2 years ago
A bank's commitment (for a specified future period of time) to provide a firm with loans up to a given amount at an interest rat
sladkih [1.3K]

Answer:

credit rationing

Explanation:

Credit rationing is a situation in which borrowers give out a fixed amount of loan to lenders for a specified time at a rate tied to the market interest rate. In this situation, loans do not exceed a certain amount from the borrower no matter what attractive offers are given by the lenders to be able to get a larger loan amount. This is done by the borrower becasue the borrower is earning maximum profits from interest rates and also  is a means to maintain equilibrum between loan funds and loan demands.  

Cheers.

8 0
3 years ago
When happens when demand exceeds supply?
ElenaW [278]

A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. As a result, businesses may hold back supply to stimulate demand.

4 0
3 years ago
Other questions:
  • Keithomp, a company that manufactures and exports candies, sells different flavors of candy depending on the taste preferences o
    10·1 answer
  • What percentage of businesses in America are home businesses?
    5·1 answer
  • Sheryl's Shipping had sales last year of $10,000. The cost of goods sold was $6,500, general and administrative expenses were $1
    6·1 answer
  • If a firm produces 10 units of output, total costs are $1,030, and average fixed costs are $10, then total variable costs are
    12·1 answer
  • If all projects are assigned the same discount rate for purposes of​ evaluation, which of the following could​ occur? A. Highmin
    9·1 answer
  • Information related to Kerber Co. is presented below.1. On April 5, purchased merchandise from Wilkes Company for $23,000, terms
    13·1 answer
  • Part A Smith Company experienced the following accounting events during 2018:
    5·1 answer
  • . ________ pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss
    7·1 answer
  • According to the chart, the three fastest growing career areas include
    12·1 answer
  • A modified endowment contract is best described as
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!