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Horizon Value - ($94.25, $66.76, $78.54, $54.98)

Current Intrinsic Value - ($51.35, $48.14, $53.06, $15.56)

Expected Dividend Yield (DY3) - (11.54%, 9.25%, 7.30%, 9.40%)

Expected Captial Gains Yield (CGY3) - (7.70%, -3.10%, 13.93%, 17.40%)

Attempts:* Average: /5 9. Stocks that don't pay dividends yet Aa Aa 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 $4.7500 dividend at that time (D3-$4.7500) and believes that the dividend will grow by 24.70% for the following two years (D4 and Ds). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.20% per year. Goodwin's required return is 14.00%. 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, carry the dividend values to four decimal places. Term Value Horizon value Current Intrinsic value If investors expect a total return of 15.00%, 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 DYs and CGY3.) | L | Expected dividend yield (DY) Expected capital gains yield (CGY)

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