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2. Stocks that don't pay dividends yet Aa Aa Goodwin Technologies is a relatively young company. Goodwin has been wildly successful, but it has yet
2. Stocks that don't pay dividends yet Aa Aa Goodwin Technologies is a relatively young company. Goodwin has been wildly successful, but it has yet to pay a dividend. An analyst has forecasted that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $2.50 dividend at that time (D3 = $2.50), and believes the dividend will grow by 30% for the following two years (D4 and D5). However, after five years, she expects Goodwin's dividend to grow at a constant rate of 7% per year. If Goodwin's required return is 12.6%, what is Goodwin's horizon value at the horizon date-when constant growth begins? $80.73 $88.64 $86.94 $77.94 O $79.31 What is Goodwin's current intrinsic value? O $58.85 O $47.81 O $50.71 $55.09 O $49.71 What are Goodwin's current expected dividend and capital gains yields? Expected dividend yield (DYo) Expected capital gains yield (CGYo
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