9. Stocks that don't pay dividends yet 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 two years (D4 and D5). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 3.54% per year. Goodwin's require l in the following chart to determine Goodwin's horizon value at the horizon return is 11.80%. F and the current intrinsic value. To increase the accuracy of your calculations date when constant growth begins carry the dividend values to four decimal places. Term Value Horizon value $36.67 Current Intrinsic value $30.56 $21.39 $25.98