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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

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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 lts first dividend three years from now. She expects Goodwin to pay a 54.75000 dividend ot that time (Ds=$4.75000) and beleves that the dividend will grow by 24.70000% for the following two years (D, and D. ). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.200005 per year. Goodwin's requlred retum is 14.00000\%. 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 caiculations, but round all final answers to two decimal ploces. If investors expect a total return of 15:00\%, what wili 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 st the end of the vear, Find DY,andCGY, ) Expected dividend vield (DYe) Expected capital gains yleid (CGry of)

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