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nataly862011 [7]
3 years ago
14

Goodwin Technologies, a relatively young comply, 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 $1.5000 dividend at that time (D3 = i 1.5000) and believes that the dividend will grow by 7.80% 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 3.42% per year. Goodwin's required return is 11.40%. Fill in the following chart to determine Goodwin's horizon value at the horizon date-when constant growth begins-and the current intrinsic value.
Horizon Value _____

Current Intrinsic Value _____

To increase the accuracy of your calculations, carry the dividend values to four decimal places.
Business
1 answer:
aleksandrvk [35]3 years ago
8 0

Answer:

Horizon value is $22.59  

Intrinsic value is $16.32

Explanation:

D3=1.5000

D4=1.5000*(1+7.8%)

D4=1.6170

D5=1.6170 *(1+7.8%)

D5=1.7431

D6=1.7431 *(1+3.42%)

D6=1.8027

horizon value is the same as the price of the stock(the terminal value) using the dividend in year 6

P=D5*(1+g)/(r-g)

D5=$1.7431

g is the constant growth rate of 3.42%

r is the required rate of return of 11.40%

P=$1.7431*(1+3.42%)/(11.40%-3.42%)

P=$1.8027/0.0798 =$22.59  

Goodwill Technologies share price is $22.59

Current intrinsic value is the dividends payable in relevant years plus the horizon value discount to present value as follows:

Present value of D3                =1.5000/(1+11.40%)^3=$1.0850

present of value of D4            =1.6170 /(1+11.40%)^4=$1.0500

present value of D5                 =1.7431 /(1+11.40%)^5=1.0160

present value of horizon value=$22.59/(1+11.40%)^5=13.1671

Total present values                                                       $16.32                                      

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She was involved in objectionable self-dealing.

Explanation:

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That clearly reflects that the business might have provided the knowledge to Wendy, but using that knowledge in benefit of the self and not of the company, is a unethical act on the part of the individual.

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Her acts are objectionable.

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What is iatrogenic anemia? How do you prevent it?
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This is a condition of lowered hematocrit and hemoglobin count resulting from<u> frequent removal of blood samples</u> needed for testing purpose in the laboratory.

They can be prevented by carrying out the following:

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Wally is trying to determine how many salespeople he needs to satisfy the demand for waterslides. Wally's Waterslide World has 6
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Answer:

50

Explanation:

Calculation to determine How many Number of Salespeople does Wally need to adequately sell waterslides

Using this formula

Number of Salespeople=(Number of customers*Calls necessary*Hours per call)/Average selling time available per year

Let plug in the formula

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Therefore Number of Salespeople that Wally need to adequately sell waterslides is ,50

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Naomi has a home loan amount of $120,000. Her monthly principal and interest payment is $679.00 for thirty years. How much inter
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Answer:

$124,440

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Given a monthly principal and interest payment of $679, over the 30 year period, Naomi would have paid back

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With a loan amount of @120,000, the interest portion of the total repayment is therefore = total repayment less the loan amount

= $244,440 - $120000

= $124,440.

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